From The AFR:
An oversupply of apartments in Melbourne and Brisbane could send unit prices down by as much as 6 per cent in 2017, according to HSBC…
“A national apartment building boom, which has been part of the rebalancing act, is likely to deliver some oversupply in the Melbourne and Brisbane apartment markets, which is expected to see apartment price falls in these markets” HSBC chief economist Paul Bloxham wrote on Friday…
Some commentators have forecast even larger falls in apartment prices in Melbourne, Brisbane and even Sydney.
AMP Capital’s chief economist Shane Oliver expects a fall of between 15 to 20 per cent over the next two years in apartment prices.
The highrise apartment boom is actually biggest in Sydney (see next chart).
However, because it has started from a much lower base (after a prolonged period of underbuilding) and is building far fewer detached houses, Sydney’s apartment market is less exposed than Brisbane and Melbourne.