Brisbane apartments have their Lehman moment

No hiding it now, via the AFR:

A marketer is offering discounts of up to 39 per cent on apartments in a newly-completed residential development in a sign that Brisbane’s apartment oversupply may be biting.

Two-bedroom apartments in The Hudson development on Albion Mill marked down from $805,000 to $490,000, three-bedroom penthouses cut from $1.2 million to $960,000 and one-bedroom units reduced to $335,000 from $445,000 feature on the price list David Carter from Landmark Asset Services sent to clients this week.

An attached flier offered ‘Sizzling Hot Deals’.

“The funder has taken the project off the developer and has given us four weeks to sell the remaining 50 or so apartments,” Mr Carter wrote in the email.

“I have never sent an email like this to friends and family but this is a damn good opportunity for anyone if they are looking for an investment and a fire sale price”.

…”It’s not a liquidation sale,” Mr Jones told the Financial Review. “That is not the situation. We’ve got between 40 to 45 units to sell. We want to start specific campaigns over various stock to pricepoint it to make sure we get sales.”

A copy of the flier advertising apartments in The Hudson development in Brisbane's Albion.

Looks like a small time ‘Lehman moment’ to me. That point in the cycle when selling overwhelms buying and liquidity suddenly turns scarce…

Houses and Holes

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.

He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

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