Brisbane off-the-plan sales plummet
Off-the-plan apartment sales have nosedived in Brisbane.
Off-the-plan sales for apartments in Brisbane’s inner city have fallen 44% for the June quarter, hitting their lowest level since the December quarter of 2012, the Australian Financial Review has reported. According to a report by Place Projects, inner Brisbane saw 464 unconditional transactions during the June quarter, down from 828 in the March quarter and more than 1,200 in the December quarter.
“The result is clearly going to clean up the market. There have already been fewer apartments released and some projects have even been withdrawn,” Place Advisory director Lachlan Walker told the AFR.
Prices were down as well, with the weighted average of $586,315 per apartment 3% below the figure recorded for the March quarter.
Walker raised the concern that settlements could be at risk.
“I haven’t heard of any horror stories yet, but the loan-to-value rations have been tightened by the banks and there is some pressure on valuers now to be more conservative,” he said.
Off-the-plan apartment sales have been in the spotlight recently, following a CoreLogic report that theorised that an oversupply could put settlements at significant risk. More recently, economic forecaster BIS Shrapnel predicted that a “tsunami” of apartment supply could see multi-unit construction collapse.