{"id":7567,"date":"2016-03-31T15:00:54","date_gmt":"2016-03-31T04:00:54","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=7567"},"modified":"2016-03-31T15:00:54","modified_gmt":"2016-03-31T04:00:54","slug":"property-oversupply-an-opportunity-for-buyers-john-mcgrath","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/property-oversupply-an-opportunity-for-buyers-john-mcgrath\/","title":{"rendered":"Property oversupply an opportunity for buyers | John McGrath"},"content":{"rendered":"

In his recent column in\u00a0Switzer<\/a>, John McGrath discuses the current market oversupply and what it means for buyers.\u00a0<\/strong><\/p>\n

Here’s what he had to say:<\/h4>\n

\"mcgrath\"<\/a>
\nAs reported in the media recently, forecaster BIS Shrapnel is holding firm to a view they\u2019ve had for a while \u2013 by 2017, every city excluding\u00a0Sydney\u00a0will have a significant oversupply of apartments; and it will probably be worst in inner\u00a0Melbourne\u00a0and inner\u00a0Brisbane.
\nOversupplies happen after a boom.
\nTime and time again, they happen.
\nLet me explain.
\nDuring a boom when the market is hot, developers race to acquire land, lodge building applications, prepare sites and build apartments \u2013 and increasingly, high rise apartments.
\nBut construction takes time so inevitably, when a boom ends, there is an overhang of new supply yet to hit the market when demand is beginning to wane.<\/p>\n

In an oversupplied market, values tend to fall a bit.<\/h4>\n

There\u2019s not enough demand to meet the extra supply.\u00a0\"Florida-Apartment-Building-Onwers-Insurance\"<\/a>
\nWhat this means for buyers is they finally get the upper hand and it\u2019s my advice to use it!
\nThere is a very specific group of buyers who can benefit from oversupplied markets.
\nThose buying for owner-occupation with a view to holding the home for the long term; and to a lesser extent investors, as long as they are in a position to cope with high vacancy rates for a while.
\nThis might include couples who want to downsize to a luxury apartment in the city at a future date.
\nFor these two groups, as long as you\u2019re buying in a good location with a history of strong demand, and you\u2019re also looking to hold your property for the long-term, you can do really well purchasing in an oversupplied market.<\/p>\n

Oversupplied markets give buyers lots of choice and flexibility with negotiating.<\/h4>\n

The trick is, once you\u2019ve bought well, you need to be able to ride out the oversupply and wait for the market to re-balance through population growth.
\nYou need to be prepared for gloomy media reports of potential price falls.\"counting<\/a>
\nYou might, in fact, experience a decline in your home\u2019s value but this is likely to be short term for good quality properties in desirable areas.
\nWhile owner-occupiers can use oversupplied markets to their advantage, investors do need to be more cautious.
\nIt might be difficult to rent your property out when there are many other options for renters.
\nThe best thing you can do is buy a property with some special features that separate it from the pack \u2013 such as a larger floor plan, great fixtures and fittings, double parking, a north facing aspect and so on, to ensure you get consistency of tenancy during the oversupply.
\nAlso, if you\u2019re looking to buy and access equity in the near future to purchase again, then buying in an oversupplied market might not be a good idea because price growth is going to take a while.
\nIf you\u2019re just looking to buy a home, live there and not do much else in property, then buying in an oversupplied market could be a phenomenal opportunity.
\nLatest estimates published in April 2015 by Infrastructure Australia show expectations of strong population growth concentrated in our capital cities.<\/p>\n

Nationally, we\u2019re predicted to grow from 22.3\u00a0million in 2011 to 30.5\u00a0million in 2031.<\/h4>\n

The four largest cities \u2013 Sydney, Melbourne, Brisbane and Perth are projected to grow by 5.8 million (or around 45%) from 12.8 million in 2011 to 18.6 million in 2031.
\nThe BIS report predicts new dwelling commencements to peak this quarter at around 221,000 but when you take into account impending population growth over the next 15 years, it\u2019s a green light for buyers looking to take advantage of oversupply prices next year.<\/p>\n","protected":false},"excerpt":{"rendered":"

In his recent column in\u00a0Switzer, John McGrath discuses the current market oversupply and what it means for buyers.\u00a0 Here’s what he had to say: As reported in the media recently, forecaster BIS Shrapnel is holding firm to a view they\u2019ve had for a while \u2013…<\/p>\n","protected":false},"author":176692471,"featured_media":5062,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[13,36],"tags":[],"class_list":["post-7567","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-story","category-property-investment-topic"],"yoast_head":"\nProperty oversupply an opportunity for buyers | John McGrath - 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\/property-oversupply-an-opportunity-for-buyers-john-mcgrath\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Property oversupply an opportunity for buyers | John McGrath - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"In his recent column in\u00a0Switzer, John McGrath discuses the current market oversupply and what it means for buyers.\u00a0 Here’s what he had to say: As reported in the media recently, forecaster BIS Shrapnel is holding firm to a view they\u2019ve had for a while \u2013...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/channels.realty.com.au\/realtytalk\/property-oversupply-an-opportunity-for-buyers-john-mcgrath\/\" \/>\n<meta property=\"og:site_name\" content=\"Realty Talk\" \/>\n<meta property=\"article:published_time\" content=\"2016-03-31T04:00:54+00:00\" \/>\n<meta name=\"author\" content=\"rolanrush\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rolanrush\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/property-oversupply-an-opportunity-for-buyers-john-mcgrath\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/property-oversupply-an-opportunity-for-buyers-john-mcgrath\\\/\"},\"author\":{\"name\":\"rolanrush\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"headline\":\"Property oversupply an opportunity for buyers | John McGrath\",\"datePublished\":\"2016-03-31T04:00:54+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/property-oversupply-an-opportunity-for-buyers-john-mcgrath\\\/\"},\"wordCount\":624,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/property-oversupply-an-opportunity-for-buyers-john-mcgrath\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"articleSection\":[\"Latest Stories\",\"Property Investment\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/property-oversupply-an-opportunity-for-buyers-john-mcgrath\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/property-oversupply-an-opportunity-for-buyers-john-mcgrath\\\/\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/property-oversupply-an-opportunity-for-buyers-john-mcgrath\\\/\",\"name\":\"Property oversupply an opportunity for buyers | John McGrath - 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