The AFR is out today citing BIS Shrapnel analysis claiming that Melbourne is facing a sub-prime crisis in the apartment market as a growing over-supply clashes with falling rents:
“I worry that if we keep building apartments in the same location, of the same type, for too much longer, we are going to see a case of sub-prime building,” BIS Shrapnel associate director Kim Hawtrey told delegates at its September Melbourne forecasting conference…
“Sub-prime building means we are over-building in areas or in demographic cohorts that lack the numbers to occupy those dwellings – where there is not the underlying demand. This is a danger we keep on highlighting,” Dr Hawtrey said.
