Eri - these articles always quote 'approved' dwellings but don't often talk how many have commenced construction. In Aus everwhere you look there is a board up around a building site talking about the building about to go up. Some of them sit there dormant for years. Many i suspect don't get the quantity of pre-sold required to commence construction.
I wonder if there is the building capacity in Melb/Syd/Brisbane to actually build the numbers being approved?
Yeah there's lots of overseas buyers in Aus. I went to London mid year after being away for 15 years and I'm not sure I liked the skyscrapers taking over the 'old city' prominence on the landscape - it took a bit of getting used. A bit different in Melbourne though. More apartments provide 'affordable housing' John Key would approve aye.
There is a great way to try and save some money. Myself and my partner used an online calculator to reduce the fees we payed real estate agents. openagent.com.au/tools/commissions-calculator
broker CLSA predicted a looming apartment "crisis" that would be kicked off by a wave of defaults forcing smaller developers into receivership, pushing down prices and potentially causing wider contagion that could lead to a recession.
The ISSA described moves by Australian banks from July this year to restrict or even withdraw funding to foreign property investors as "almost cartel-like policies".
It comes after Australia's richest man, billionaire property developer Harry Triguboff, warned that a "very significant" number of Chinese buyers were now failing to settle their off-the-plan units and urgent action was needed.
As apartment price growth stalls or goes backwards, the risk of buyers walking away from their deposits grows.
NAB chief economist Alan Oster described the ISSA's prediction of an imminent collapse as "garbage", adding that the CLSA report was "very poor analysis".
Commonwealth Bank said concerns about a peaking in the residential construction cycle "look overdone" and it wasn't expecting any "significant contraction" until late 2017 and early 2018.
A construction boom in central Melbourne has had industry experts talking about overproduction on the apartment stage for months and now predictions have proven true - an increasing number of units have lost value even before That they were built. Other quasi-new units resell below their last purchase price.
Sales in a Little Collins St apartment building proved that the supply far exceeds demand. A two-bedroom unit in the CBD building originally sold off the plan in 2011 for $ 583,370 according to CoreLogic records. But just last month it, earned only $ 565,000. And falling values are not only in price ranges more affordable. An apartment of 140 m2 of three rooms at the same address, that originally sold for an impressive amount of $ 2,195 million, persisted on the market for 384 days before being unloaded for only $ 1.565 million.