Apartment oversupply in Melbourne, Brisbane: HSBC's Paul Bloxham makes 2017 forecast
Apartment price falls are possible in Brisbane and Melbourne in 2017 due to oversupply, according to HSBC.
Paul Bloxham, HSBC senior economist said a national apartment building boom is likely to deliver the oversupply.
"This is is expected to see apartment price falls in these markets," he said.
"Detached dwelling markets across the country are set to see further price growth, albeit moderating.
"Third, there is a substantial ramp-up in apartment supply, particularly in Melbourne and Brisbane, which is weighing on apartment price growth, while across most cities there has been only limited supply of detached dwellings.
"This is also affecting timely indicators of conditions, such as auction clearance rates.
"Detached dwellings are more likely to be sold at auction, while many apartments are sold off plan. As a result of divergence across market segments, auction clearance rates have been high, but overall dwelling turnover has been low. "
