On Thursday, the Reserve Bank of Australia (RBA) released its bi-annual Financial Stability Review (FSR), which warned that the flood of new high-rise supply across the East Coast capitals could lead to falling apartment prices and possible defaults from buyers and developers, especially in Brisbane. Below are the key extracts.
…there continue to be concerns about an oversupply of apartments in pockets of Melbourne and in parts of Brisbane, where apartment prices have declined in recent months, rental growth has been soft and the vacancy rate has trended higher (Graph 2.2)…
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Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
