Still more Brisbane apartment gloom today:
Brisbane apartment owners face a potential $4 billion drop in property values over the next three years in the face of oversupply and a falling market.
Amid concern from the Reserve Bank and major banks, BIS Oxford Economics has tipped a drop in the city’s median unit price of 7 per cent to 2020, taking the median price of a Brisbane unit from $392,500 to $365,025 in today’s terms.
BIS Oxford Economics residential property manager Angie Zigomanis said while this was a worst-case scenario where all sales fell from current pricing, newer Brisbane units were expected to lose value in the short term.
“Anyone who has bought off the plan now is unlikely to see a gain at all in the three years,” he said. “Those losses are bigger when you take into account the stamp duty on the purchases as well. For a lot of purchasers it means their equity has dissipated.”
Almost a quarter of Brisbane apartments lost money in the first three months of the year, up from about 18 per cent of sales making a loss mid-last year. Across Brisbane each loss-making sale, including homes, wiped off an average $27,000.
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