\u201cBolt holing\u201d describes the strategy by foreign investors of buying property in order to park their capital in the Australian market, but then leaving the holding vacant. The result has seen an increasing number of empty new units in our major capitals.
\nWith Chinese buyers in particular, the idea of generating rental income isn\u2019t high on the priority list \u2013 as long as the dollars are safely locked into real estate an overnight plane ride away. One anonymous Hong Kong-based source says the practice is very common there as well. In China, there\u2019s no annual property tax so holding costs are low.
\nIn many cases, Chinese buyers of Aussie property are flush with cash and consider the idea of a tenant to be too much trouble.
\n\u201cThey\u2019re investments, or some means of acquiring residency, or both,\u201d the source says.
\nHe goes on to point out that Chinese buyers also don\u2019t like to buy \u201csecond-hand homes\u201d.
\nThe problem isn\u2019t restricted to inner-city units, of course. The effects are, however, more noticeable in city high-rises due to concentration of residents.
\nUnder current foreign investment laws, buyers can only acquire new stock, not existing housing.
\nThe process in dealing with the Foreign Investment Review Board (FIRB) is one of notification \u2013 that is, the buyer must notify the FIRB of the intention to purchase to gain approval. Alternatively, a developer may make an application to the FIRB for the purpose of selling a project to overseas buyers. An entire development may end up being sold offshore, although current guidelines do require the developer to advertise the project locally as well.<\/p>\n
The numbers<\/strong><\/h2>\nThe FIRB publishes financial-year reports, so the most recent numbers at the time of writing are for 2013\/14.
\nReal estate was the dominant growth sector for foreign investment, with approvals almost doubling from 12,025 in 2012\/13 to 23,428 the following year, inclusive of both commercial and residential property. Proposed investment in residential real estate also increased from $17.2 billion to $34.7\u00a0billion for the same period. The 2013\/14 financial year was the first to see China become the largest source country for investment, with $27.7 billion coming from the sovereign state.
\nMore telling is the data for residential approvals granted to developers looking to sell new and off-the-plan units overseas. This figure rose in dollar terms from $5.73 billion in approved investment to $16.38 billion\u00a0in 2013\/14.
\nWhat is clear is that the numbers are trending upwards, with Sydney, Melbourne and, to a lesser extent, Brisbane featuring heavily.
\nAPI spoke to Brian Wilson, chairman of the FIRB, who says the 2014\/15 figures are likely to be even higher, but he believes the overall impact of transactions is overstated.
\n\u201cWithin the context of a total housing stock of nine million units, 500,000 or 600,000 transactions a year and 100,000 new properties, the sort of numbers that we\u2019re seeing, 20,000, 30,000 properties by foreigners\u2026 it\u2019s not extraordinary.\u201d
\nPete Wargent, buyers\u2019 agent at AllenWargent Residential Property Buyers, says the trend is, however, pretty obvious.
\n\u201cIf there were any doubts about the potential scale of Chinese investments, they were obliterated by that report because Chinese capital is now the number one driver of foreign purchases among these properties.\u201d
\nThe effect is compounded by what some see as an unlevel playing field that benefits overseas developers looking to sell offshore. These companies aren\u2019t tied to local lender guidelines, such as 30\u00a0per cent presales. In addition, they may borrow at lower interest rates and the fall of the Australian dollar has made our property even more attractive.
\nWhile the numbers may look scary, the idea of our new units being keenly sought by overseas buyers isn\u2019t necessarily bad, according to Wilson.
\n\u201cThe creation of new housing stock is generally seen as a good thing, it\u2019s good for economic development and it\u2019s good to keep the housing stock up\u2026 I think the general view is that in a growing market such as we are in in most places, we have a shortage of housing stock.\u201d
\nWargent agrees there are benefits, but also believes a balance needs to be struck between unit demand and broader social demands.
\n\u201cWe have to question whether we really need that many shoe-box apartments and whether we should be trying to find ways to build and develop for all different demographics, because not everyone wants to live in that property type.\u201d<\/p>\n
Catching data<\/strong><\/h2>\nOne of the difficulties around the ghost tower discussion is that reliable data on empty investment units is unavailable. The FIRB isn\u2019t charged with recording the intended uses of the purchased units. If this information was to be gathered, the current system would need to ask the purchasers of their plans directly, creating a sort of honour system.
\nIf the numbers are to be tracked, recent changes in legislation will most likely see responsibility for identifying \u201cdark\u201d units fall to a new task force within the Australian Taxation Office (ATO). Wilson says they\u2019re better equipped to deal with compliance and monitoring.
\n\u201cThe total number of staff in the foreign investment division of the FIRB secretariat is about 35, and the total number of staff involved in residential real estate of that was about five. There are 500,000 residential property transfers each year in Australia. Now, to actually look at those, to analyse those in detail, requires a lot of people and a lot of resource.
\n\u201cI think moving that residential to ATO is a great outcome.\u201d<\/p>\n
Potential problems<\/strong><\/h2>\nWilson says even though the \u201cdark unit\u201d data isn\u2019t being tracked, he remains unconcerned. He, in fact, isn\u2019t convinced it\u2019s entrenched.
\n\u201cI do note that in the house economics committee, when it had its inquiry into housing with the committee chaired by Kelly O\u2019Dwyer about 12 months ago, there was a lot of anecdotal concern around properties bought by foreigners being left vacant, but despite all the attempts, they didn\u2019t receive any material evidence that that occurred much at all. I\u2019m sure it does occasionally\u2026 [but] no one\u2019s been able to come up with any hard evidence that it\u2019s actually occurring in Australia.\u201d
\nNo hard data perhaps, but many on the ground believe it\u2019s an established practice that shouldn\u2019t be left unchecked.
\nMiriam Sandkuhler, founder of Melbourne buyers\u2019 agent Property Mavens, sees the idea of vast numbers of vacant units as both a hurdle and
\nan opportunity.
\nFor starters, she says our vacancy rate numbers in the big city centres will be skewed, because these units aren\u2019t being counted. She sees urban renewal areas in Melbourne, for example, at risk of having tumbleweed blowing down the main street, too.
\n\u201cFishermans Bend coming up is a precinct that\u2019s going to be listed for sale in the future… If something isn\u2019t done about managing all these vacant properties then there\u2019s nothing to say that it won\u2019t become a \u2018ghost\u2019 precinct.\u201d
\nAnother concern could be a lack of participation in owners corporations. Sandkuhler says many overseas investors may also be ignorant of the regulations around owners corporations and bodies corporate.
\n\u201cIf they\u2019re foreign investors and they\u2019re overseas and they can\u2019t be contacted, and they\u2019re not contributing to owners corporation fees and they\u2019re not contributing to special levies and they\u2019re not contributing to insurance fees, that means you\u2019ve got the owners corporation spending a lot of time, money and energy on behalf of all the other owners chasing these people to contribute what they\u2019re legally obligated to contribute.\u201d
\nWilson, on the other hand, doesn\u2019t believe any oversupply will have a major impact on the market because the units aren\u2019t drawing on existing housing stock. He sees that foreign demand has created the stock so, in reality, the market is in balance.
\n\u201cThey\u2019re being built on the back of existing demand by purchases and if they weren\u2019t, if the underlying foreign buyer wasn\u2019t buying them in the first place, they just wouldn\u2019t be built.
\n\u201cI actually think these dark apartments, to the extent they exist, are a temporary addition to the housing stock that\u2019s actually not being used, that wouldn\u2019t even exist were the buyers not buying them in the first place.\u201d
\n![\"1\"](\"https:\/\/i0.wp.com\/realestatetalk.com.au.s3.amazonaws.com\/wp-content\/uploads\/2015\/09\/1.jpg?resize=348%2C531\")
<\/p>\n
Solutions<\/strong><\/h2>\nRegardless of whether you side with the free-market FIRB, or you\u2019re startled by the oversupply implications, there are suggestions on how we should treat a rise in dark apartments.
\nSandkuhler says the first step should be educating foreign buyers \u2013 a program whereby overseas investors can gain a better understanding of how our market works and the advantages of renting out their property.
\n\u201cWe should be educating foreign investors when they apply to purchase a property through the FIRB scheme. They should be getting a little guide on how to go about renting your property for additional income.\u201d
\nWilson agrees that education is important, but believes implementing a wide ranging program has its challenges.
\n\u201cI think increased education is always a good thing\u2026 but finding a way to actually tap into that portion of the billion or so Chinese that might be interested in buying a property here is a pretty big task.\u201d
\nSandkuhler also sees an opportunity with these vacant properties \u2013 a chance to alleviate affordable housing woes.
\n\u201cWe have a very high demand for affordable housing requirements\u2026 there\u2019d be 27,000 to 28,000 Victorians who are currently homeless as a result of a variety of circumstances.
\n\u201cAs of March 2015, the public housing wait-list was just sitting at 33,900. The data for affordable lettings in March 2014 indicates that only four per cent of one-bedroom rentals and only 12 per cent of three-bedroom rentals are actually affordable\u2026 Let\u2019s create incentives for those properties to be occupied.\u201d
\nFinally \u2013 shouldn\u2019t we encourage all investors to conduct research and seek reliable, independent advice? Overseas buyers should have adequate access to professionals helping them to understand fair value and market rent as well as effective ways to manage their asset and generate income.<\/p>\n
In conclusion<\/strong><\/h2>\nWilson doesn\u2019t believe the issue of dark units or towers is a problem that can\u2019t be surmounted by normal market forces.
\n\u201cIt\u2019s not economically rational for someone to own a property that they don\u2019t live in and they don\u2019t rent out for very long periods. I\u2019m not saying it doesn\u2019t happen from time to time, but sooner or later, over the long-term, economic rationality tends to win out.\u201d
\nOthers aren\u2019t so sure. In an industry where data could occupy an entire edition of any major daily newspaper, shouldn\u2019t we at least identify if there\u2019s excess stock lying in the shadows and decide whether it\u2019s a real threat before choosing to ignore it? Shining a light on dark towers seems a logical move. api<\/p>\n","protected":false},"excerpt":{"rendered":"
Night drives aren\u2019t always educational, but try this social experiment next time you have the accelerator set to take-me-home mode in Melbourne or Sydney. Look around at the new near-CBD residential towers creeping ever upward \u2013 high, modern\u2026 and dark. According to property players, there…<\/p>\n","protected":false},"author":176692471,"featured_media":5656,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[29],"tags":[],"class_list":["post-5654","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-video"],"yoast_head":"\n
Locked out - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/locked-out\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Locked out - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"Night drives aren\u2019t always educational, but try this social experiment next time you have the accelerator set to take-me-home mode in Melbourne or Sydney. Look around at the new near-CBD residential towers creeping ever upward \u2013 high, modern\u2026 and dark. 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\nReal estate was the dominant growth sector for foreign investment, with approvals almost doubling from 12,025 in 2012\/13 to 23,428 the following year, inclusive of both commercial and residential property. Proposed investment in residential real estate also increased from $17.2 billion to $34.7\u00a0billion for the same period. The 2013\/14 financial year was the first to see China become the largest source country for investment, with $27.7 billion coming from the sovereign state.
\nMore telling is the data for residential approvals granted to developers looking to sell new and off-the-plan units overseas. This figure rose in dollar terms from $5.73 billion in approved investment to $16.38 billion\u00a0in 2013\/14.
\nWhat is clear is that the numbers are trending upwards, with Sydney, Melbourne and, to a lesser extent, Brisbane featuring heavily.
\nAPI spoke to Brian Wilson, chairman of the FIRB, who says the 2014\/15 figures are likely to be even higher, but he believes the overall impact of transactions is overstated.
\n\u201cWithin the context of a total housing stock of nine million units, 500,000 or 600,000 transactions a year and 100,000 new properties, the sort of numbers that we\u2019re seeing, 20,000, 30,000 properties by foreigners\u2026 it\u2019s not extraordinary.\u201d
\nPete Wargent, buyers\u2019 agent at AllenWargent Residential Property Buyers, says the trend is, however, pretty obvious.
\n\u201cIf there were any doubts about the potential scale of Chinese investments, they were obliterated by that report because Chinese capital is now the number one driver of foreign purchases among these properties.\u201d
\nThe effect is compounded by what some see as an unlevel playing field that benefits overseas developers looking to sell offshore. These companies aren\u2019t tied to local lender guidelines, such as 30\u00a0per cent presales. In addition, they may borrow at lower interest rates and the fall of the Australian dollar has made our property even more attractive.
\nWhile the numbers may look scary, the idea of our new units being keenly sought by overseas buyers isn\u2019t necessarily bad, according to Wilson.
\n\u201cThe creation of new housing stock is generally seen as a good thing, it\u2019s good for economic development and it\u2019s good to keep the housing stock up\u2026 I think the general view is that in a growing market such as we are in in most places, we have a shortage of housing stock.\u201d
\nWargent agrees there are benefits, but also believes a balance needs to be struck between unit demand and broader social demands.
\n\u201cWe have to question whether we really need that many shoe-box apartments and whether we should be trying to find ways to build and develop for all different demographics, because not everyone wants to live in that property type.\u201d<\/p>\n
One of the difficulties around the ghost tower discussion is that reliable data on empty investment units is unavailable. The FIRB isn\u2019t charged with recording the intended uses of the purchased units. If this information was to be gathered, the current system would need to ask the purchasers of their plans directly, creating a sort of honour system.
\nIf the numbers are to be tracked, recent changes in legislation will most likely see responsibility for identifying \u201cdark\u201d units fall to a new task force within the Australian Taxation Office (ATO). Wilson says they\u2019re better equipped to deal with compliance and monitoring.
\n\u201cThe total number of staff in the foreign investment division of the FIRB secretariat is about 35, and the total number of staff involved in residential real estate of that was about five. There are 500,000 residential property transfers each year in Australia. Now, to actually look at those, to analyse those in detail, requires a lot of people and a lot of resource.
\n\u201cI think moving that residential to ATO is a great outcome.\u201d<\/p>\n
Potential problems<\/strong><\/h2>\nWilson says even though the \u201cdark unit\u201d data isn\u2019t being tracked, he remains unconcerned. He, in fact, isn\u2019t convinced it\u2019s entrenched.
\n\u201cI do note that in the house economics committee, when it had its inquiry into housing with the committee chaired by Kelly O\u2019Dwyer about 12 months ago, there was a lot of anecdotal concern around properties bought by foreigners being left vacant, but despite all the attempts, they didn\u2019t receive any material evidence that that occurred much at all. I\u2019m sure it does occasionally\u2026 [but] no one\u2019s been able to come up with any hard evidence that it\u2019s actually occurring in Australia.\u201d
\nNo hard data perhaps, but many on the ground believe it\u2019s an established practice that shouldn\u2019t be left unchecked.
\nMiriam Sandkuhler, founder of Melbourne buyers\u2019 agent Property Mavens, sees the idea of vast numbers of vacant units as both a hurdle and
\nan opportunity.
\nFor starters, she says our vacancy rate numbers in the big city centres will be skewed, because these units aren\u2019t being counted. She sees urban renewal areas in Melbourne, for example, at risk of having tumbleweed blowing down the main street, too.
\n\u201cFishermans Bend coming up is a precinct that\u2019s going to be listed for sale in the future… If something isn\u2019t done about managing all these vacant properties then there\u2019s nothing to say that it won\u2019t become a \u2018ghost\u2019 precinct.\u201d
\nAnother concern could be a lack of participation in owners corporations. Sandkuhler says many overseas investors may also be ignorant of the regulations around owners corporations and bodies corporate.
\n\u201cIf they\u2019re foreign investors and they\u2019re overseas and they can\u2019t be contacted, and they\u2019re not contributing to owners corporation fees and they\u2019re not contributing to special levies and they\u2019re not contributing to insurance fees, that means you\u2019ve got the owners corporation spending a lot of time, money and energy on behalf of all the other owners chasing these people to contribute what they\u2019re legally obligated to contribute.\u201d
\nWilson, on the other hand, doesn\u2019t believe any oversupply will have a major impact on the market because the units aren\u2019t drawing on existing housing stock. He sees that foreign demand has created the stock so, in reality, the market is in balance.
\n\u201cThey\u2019re being built on the back of existing demand by purchases and if they weren\u2019t, if the underlying foreign buyer wasn\u2019t buying them in the first place, they just wouldn\u2019t be built.
\n\u201cI actually think these dark apartments, to the extent they exist, are a temporary addition to the housing stock that\u2019s actually not being used, that wouldn\u2019t even exist were the buyers not buying them in the first place.\u201d
\n<\/p>\n
Solutions<\/strong><\/h2>\nRegardless of whether you side with the free-market FIRB, or you\u2019re startled by the oversupply implications, there are suggestions on how we should treat a rise in dark apartments.
\nSandkuhler says the first step should be educating foreign buyers \u2013 a program whereby overseas investors can gain a better understanding of how our market works and the advantages of renting out their property.
\n\u201cWe should be educating foreign investors when they apply to purchase a property through the FIRB scheme. They should be getting a little guide on how to go about renting your property for additional income.\u201d
\nWilson agrees that education is important, but believes implementing a wide ranging program has its challenges.
\n\u201cI think increased education is always a good thing\u2026 but finding a way to actually tap into that portion of the billion or so Chinese that might be interested in buying a property here is a pretty big task.\u201d
\nSandkuhler also sees an opportunity with these vacant properties \u2013 a chance to alleviate affordable housing woes.
\n\u201cWe have a very high demand for affordable housing requirements\u2026 there\u2019d be 27,000 to 28,000 Victorians who are currently homeless as a result of a variety of circumstances.
\n\u201cAs of March 2015, the public housing wait-list was just sitting at 33,900. The data for affordable lettings in March 2014 indicates that only four per cent of one-bedroom rentals and only 12 per cent of three-bedroom rentals are actually affordable\u2026 Let\u2019s create incentives for those properties to be occupied.\u201d
\nFinally \u2013 shouldn\u2019t we encourage all investors to conduct research and seek reliable, independent advice? Overseas buyers should have adequate access to professionals helping them to understand fair value and market rent as well as effective ways to manage their asset and generate income.<\/p>\n
In conclusion<\/strong><\/h2>\nWilson doesn\u2019t believe the issue of dark units or towers is a problem that can\u2019t be surmounted by normal market forces.
\n\u201cIt\u2019s not economically rational for someone to own a property that they don\u2019t live in and they don\u2019t rent out for very long periods. I\u2019m not saying it doesn\u2019t happen from time to time, but sooner or later, over the long-term, economic rationality tends to win out.\u201d
\nOthers aren\u2019t so sure. In an industry where data could occupy an entire edition of any major daily newspaper, shouldn\u2019t we at least identify if there\u2019s excess stock lying in the shadows and decide whether it\u2019s a real threat before choosing to ignore it? Shining a light on dark towers seems a logical move. api<\/p>\n","protected":false},"excerpt":{"rendered":"
Night drives aren\u2019t always educational, but try this social experiment next time you have the accelerator set to take-me-home mode in Melbourne or Sydney. Look around at the new near-CBD residential towers creeping ever upward \u2013 high, modern\u2026 and dark. According to property players, there…<\/p>\n","protected":false},"author":176692471,"featured_media":5656,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[29],"tags":[],"class_list":["post-5654","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-video"],"yoast_head":"\n
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\n\u201cI do note that in the house economics committee, when it had its inquiry into housing with the committee chaired by Kelly O\u2019Dwyer about 12 months ago, there was a lot of anecdotal concern around properties bought by foreigners being left vacant, but despite all the attempts, they didn\u2019t receive any material evidence that that occurred much at all. I\u2019m sure it does occasionally\u2026 [but] no one\u2019s been able to come up with any hard evidence that it\u2019s actually occurring in Australia.\u201d
\nNo hard data perhaps, but many on the ground believe it\u2019s an established practice that shouldn\u2019t be left unchecked.
\nMiriam Sandkuhler, founder of Melbourne buyers\u2019 agent Property Mavens, sees the idea of vast numbers of vacant units as both a hurdle and
\nan opportunity.
\nFor starters, she says our vacancy rate numbers in the big city centres will be skewed, because these units aren\u2019t being counted. She sees urban renewal areas in Melbourne, for example, at risk of having tumbleweed blowing down the main street, too.
\n\u201cFishermans Bend coming up is a precinct that\u2019s going to be listed for sale in the future… If something isn\u2019t done about managing all these vacant properties then there\u2019s nothing to say that it won\u2019t become a \u2018ghost\u2019 precinct.\u201d
\nAnother concern could be a lack of participation in owners corporations. Sandkuhler says many overseas investors may also be ignorant of the regulations around owners corporations and bodies corporate.
\n\u201cIf they\u2019re foreign investors and they\u2019re overseas and they can\u2019t be contacted, and they\u2019re not contributing to owners corporation fees and they\u2019re not contributing to special levies and they\u2019re not contributing to insurance fees, that means you\u2019ve got the owners corporation spending a lot of time, money and energy on behalf of all the other owners chasing these people to contribute what they\u2019re legally obligated to contribute.\u201d
\nWilson, on the other hand, doesn\u2019t believe any oversupply will have a major impact on the market because the units aren\u2019t drawing on existing housing stock. He sees that foreign demand has created the stock so, in reality, the market is in balance.
\n\u201cThey\u2019re being built on the back of existing demand by purchases and if they weren\u2019t, if the underlying foreign buyer wasn\u2019t buying them in the first place, they just wouldn\u2019t be built.
\n\u201cI actually think these dark apartments, to the extent they exist, are a temporary addition to the housing stock that\u2019s actually not being used, that wouldn\u2019t even exist were the buyers not buying them in the first place.\u201d
\n
<\/p>\nRegardless of whether you side with the free-market FIRB, or you\u2019re startled by the oversupply implications, there are suggestions on how we should treat a rise in dark apartments.
\nSandkuhler says the first step should be educating foreign buyers \u2013 a program whereby overseas investors can gain a better understanding of how our market works and the advantages of renting out their property.
\n\u201cWe should be educating foreign investors when they apply to purchase a property through the FIRB scheme. They should be getting a little guide on how to go about renting your property for additional income.\u201d
\nWilson agrees that education is important, but believes implementing a wide ranging program has its challenges.
\n\u201cI think increased education is always a good thing\u2026 but finding a way to actually tap into that portion of the billion or so Chinese that might be interested in buying a property here is a pretty big task.\u201d
\nSandkuhler also sees an opportunity with these vacant properties \u2013 a chance to alleviate affordable housing woes.
\n\u201cWe have a very high demand for affordable housing requirements\u2026 there\u2019d be 27,000 to 28,000 Victorians who are currently homeless as a result of a variety of circumstances.
\n\u201cAs of March 2015, the public housing wait-list was just sitting at 33,900. The data for affordable lettings in March 2014 indicates that only four per cent of one-bedroom rentals and only 12 per cent of three-bedroom rentals are actually affordable\u2026 Let\u2019s create incentives for those properties to be occupied.\u201d
\nFinally \u2013 shouldn\u2019t we encourage all investors to conduct research and seek reliable, independent advice? Overseas buyers should have adequate access to professionals helping them to understand fair value and market rent as well as effective ways to manage their asset and generate income.<\/p>\n
In conclusion<\/strong><\/h2>\nWilson doesn\u2019t believe the issue of dark units or towers is a problem that can\u2019t be surmounted by normal market forces.
\n\u201cIt\u2019s not economically rational for someone to own a property that they don\u2019t live in and they don\u2019t rent out for very long periods. I\u2019m not saying it doesn\u2019t happen from time to time, but sooner or later, over the long-term, economic rationality tends to win out.\u201d
\nOthers aren\u2019t so sure. In an industry where data could occupy an entire edition of any major daily newspaper, shouldn\u2019t we at least identify if there\u2019s excess stock lying in the shadows and decide whether it\u2019s a real threat before choosing to ignore it? Shining a light on dark towers seems a logical move. api<\/p>\n","protected":false},"excerpt":{"rendered":"
Night drives aren\u2019t always educational, but try this social experiment next time you have the accelerator set to take-me-home mode in Melbourne or Sydney. Look around at the new near-CBD residential towers creeping ever upward \u2013 high, modern\u2026 and dark. According to property players, there…<\/p>\n","protected":false},"author":176692471,"featured_media":5656,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[29],"tags":[],"class_list":["post-5654","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-video"],"yoast_head":"\n
Locked out - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/locked-out\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Locked out - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"Night drives aren\u2019t always educational, but try this social experiment next time you have the accelerator set to take-me-home mode in Melbourne or Sydney. Look around at the new near-CBD residential towers creeping ever upward \u2013 high, modern\u2026 and dark. 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\n\u201cIt\u2019s not economically rational for someone to own a property that they don\u2019t live in and they don\u2019t rent out for very long periods. I\u2019m not saying it doesn\u2019t happen from time to time, but sooner or later, over the long-term, economic rationality tends to win out.\u201d
\nOthers aren\u2019t so sure. In an industry where data could occupy an entire edition of any major daily newspaper, shouldn\u2019t we at least identify if there\u2019s excess stock lying in the shadows and decide whether it\u2019s a real threat before choosing to ignore it? Shining a light on dark towers seems a logical move. api<\/p>\n","protected":false},"excerpt":{"rendered":"