A possibility of apartment glut in some of the largest cities in Australia is being considered by real estate expert, in particular by the Reserve Bank of Australia and Citibank’s Australian economics team, Businessinsider.com.au reports on Monday.
Uncertainty is increased by the fact of heavy involvement of foreign investors in the real estate market of Australia. First of all, the matter concerns the Chinese buyers, who contribute to building boom in the country.
Cameron Kusher, a research analyst at CoreLogic, provided a data over the number of new apartments under construction in Australia’s large cities, what includes 55,682 units across New South Wales, 46,676 in Victoria and 31,070 under construction in Queensland.
According to the expert, the current unit construction boom is “unlike anything we’ve ever seen before”. This situation carries a risk of apartment glut, he believes.