{"id":3794,"date":"2015-03-16T01:00:53","date_gmt":"2015-03-15T14:00:53","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=3794"},"modified":"2015-03-16T01:00:53","modified_gmt":"2015-03-15T14:00:53","slug":"are-we-facing-an-apartment-oversupply","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/are-we-facing-an-apartment-oversupply\/","title":{"rendered":"Are we facing an apartment oversupply?"},"content":{"rendered":"<p>&nbsp;<br \/>\nIn today&#8217;s show<strong> Angie Zigomanis<\/strong>\u00a0from BIS Shrapnel flags that there is an oversupply of units in the Melbourne market already, with 1000&#8217;s more scheduled.<br \/>\n&nbsp;<\/p>\n<h4>Transcript:<\/h4>\n<p><b>Kevin<\/b>:\u00a0 There\u2019s an article in the latest edition of <i>Australian Property Investor<\/i> magazine that takes a look at what\u2019s available in off-the-plan sales in the capital cities around Australia, and also what you should be looking at and maybe what you shouldn\u2019t be.<br \/>\nOn the strength of that article, <i>Australian Property Investor<\/i> magazine asked me to do an interview with one of the people quoted in that article about some of the pitfalls, what you should be looking for, and in particular, whether or not there is an oversupply in the Melbourne market.<br \/>\nYou can listen to that full interview and, in fact, that podcast, which is available now on the API featured channel at RealEstateTalk.com.au. But I thought now, I\u2019d share just a little bit of that conversation with you \u2013 the conversation that I had with BIS Shrapnel&#8217;s Angie Zigomanis specifically about the Melbourne market.<br \/>\nAngie, how bad is the situation in Melbourne?<br \/>\n<b>Angie<\/b>:\u00a0 At the moment, we think vacancy rates are only slightly elevated. There\u2019s been a surge in new apartment construction, and over the last two years, there\u2019s been about 6000 apartments completed annually in inner Melbourne on average, compared to a long-term average of about 2500, so we\u2019re talking about a substantial increase.<br \/>\nVacancy rates are edging up, but really the issue is in the current pipeline of apartments that are being constructed. We estimate, on average, over the next three years, another 6000 or so apartments per annum will be completed on top of the last two years, which means that the vacancy rates will continue to increase, and that will place pressure on rents.<br \/>\n<b>Kevin<\/b>:\u00a0 Are there any areas of Melbourne that you\u2019re more concerned about than others?<br \/>\n<b>Angie<\/b>:\u00a0 We\u2019re most concerned about the central Melbourne areas \u2013 the CBD, Southbank, Docklands, and perhaps a few suburbs fringing those suburbs, as well.<br \/>\nWhen you look at anyone who has purchased an off-the-plan apartment in the last two years, the majority, if they were to sell today, would probably sell at a lower price than they purchased it at.<br \/>\nPart of that is because a lot of the stamp duty savings etc. are built in to the purchase price, and anyone who\u2019s buying an established apartment afterwards has to pay stamp duty on their dwelling, so that effectively gets built into the resale price, and so the resale price is slightly lower.<br \/>\nBut anyone who does purchase an apartment now after taking into account all the purchase costs, I suspect probably will have definitely recorded a loss in most cases.<br \/>\n<b>Kevin<\/b>:\u00a0 In that conversation with Angie, we cover a lot more detail. We talk about whether or not you\u2019re better off holding back and waiting to buy units at the end after they\u2019ve been completed, what are the features in a unit block that are going to minimize the impact of oversupply, any advice that he has \u2013 and he has a lot of it, too \u2013 for anyone contemplating buying off the plan, particularly in Victoria, and whether or not you\u2019re better off having a valuation done before you agree to buy.<br \/>\nLook, there\u2019s a lot in that chat that I had with Angie. You can hear the full podcast right now by going to the API featured channel at RealEstateTalk.com.au.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; In today&#8217;s show Angie Zigomanis\u00a0from BIS Shrapnel flags that there is an oversupply of units in the Melbourne market already, with 1000&#8217;s more scheduled. &nbsp; Transcript: Kevin:\u00a0 There\u2019s an article in the latest edition of Australian Property Investor magazine that takes a look at&#8230;<\/p>\n","protected":false},"author":176692471,"featured_media":3796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10,25],"tags":[101],"class_list":["post-3794","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kevin-turner-sponsored-channels","category-sponsored-channels","tag-podcast"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Are we facing an apartment oversupply? 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