Friday, 2 December 2016

Market Shakeout in Brisbane

It's a similar story in Brisbane where apartment prices are forecast to fall by as much as 4 per cent. "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. "A modest shakeout in the inner-city apartment markets in Brisbane and Melbourne, as we are forecasting, is not expected to have a broad-based impact on the overall housing market or economy. "Nationally, housing price growth is expected to slow to between 2 per cent and5 per cent in 2017, as tighter lending criteria and strong apartment supply combine to cool the market, according to HSBC.A third factor is the mix is a slowing demand from offshore buyers, who have galvanized parts of the housing market in recent years. The outlook for Sydney prices is a little stronger, with growth of 4 per cent to 6 per cent forecast. Meanwhile, in the commercial property sector, price growth has also been buoyed by low global and local interest rates. "The rise in commercial property prices has significantly outpaced rents, pushing yields lower, and driving them to converge towards global commercial property yields, which are still lower than those in Australia,"

No comments:

Post a Comment