Although 52 new projects have been cancelled, the problem of excess apartments in the urban areas of Brisbane will not be resolved until 2021, the Australian newspaper reported.
8300 apartments will be completed between 2017 and 2018, a record for Brisbane, according to a BIS Oxford Economics report. In 2019, 5000 apartments were still under construction, putting downward pressure on housing and rent.
Ange Zigomanis, senior manager at BIS Oxford Economics, said that, in general, Brisbane built less than 2000 units a year.
"We are at a time when rent is under pressure, and there is pressure on house prices. Home buyers and investors have also declined, which also has an impact on the next round of development. But at least for the next two years, this situation will not have an impact on supply. The vacancy rate will not be tightened until a few years later. "
The oversupply of apartments is already very serious and may have a bearing on real estate.
"if you`re a potential homeowner, if you`re still renting downtown, you should have the landlord give you a discount now, and you can save more money to save the down payment."
Developers are also aware of the trend, and 52 projects totalling more than 10,000 apartments have been cancelled.
Approval of apartment projects has fallen by 15% since February, according to the Australian Bureau of Statistics.
Chinese developer R / F Property Australia announced plans on Wednesday to build 1032 apartments on the banks of the West End River. Seven buildings, ranging from 12 to 15 floors, will be built on the 16827 square meter of land, including one-bedroom, two-bedroom and three-bedroom apartments.
Rodney Chadwick, senior developer manager, said it would take four years for the project to go public. " We think there is a long-term need for apartments here, especially this place. "
