Harcourts is the fastest growing real estate group in Australia and New Zealand’s largest real estate group, with more than 780 offices across eight countries along with more than 5,200 sales consultants and a growing property management team. Please visit www.harcourts.com.au for more information. ISSUE 1 // JANUARY 2015 Bringing you the latest news, facts and figures from the Australian real estate scene. There has been of bit of attention on apartments of late, with some real estate commentators cautioning against purchasing an apartment in a few of our capital cities, speculating that we may soon have a glut of apartments on our hands. Historically, inner-city apartments and those in surrounding suburbs have been popular due both to their prices and proximity to the city, and for investors with apartments bringing in good rental yields in cities like Sydney. ARE APARTMENTS STILL A SOUND INVESTMENT? Now there seems to be concern on the recent development of apartment complexes in capital cities leading to oversupply and not just in areas like Melbourne and Sydney, with both Brisbane and Perth being discussed as well. So the question is, are apartments still a sound investment? The answer to that largely depends on which city you’re looking to buy in and if you’ll be the owner-occupier or investor. WHAT’S HAPPENING IN OUR LARGEST CAPITAL CITIES? According to a recent article by Real Estate Business Online, Melbourne for example, is currently facing an oversupply of apartments, after population growth in recent years has led to developers investing heavily in new developments. Now that population growth has slowed – which is tipped to continue – there is THINKING OF BUYING AN APARTMENT IN 2015? an oversupply and prices are dropping. This may not be good news for investors, but for owner-occupiers, the next couple of years could present an opportunity to buy a Melbourne apartment at the right price – especially if you plan to occupy the property in the mid to long term. Property commentators seem to be divided on Sydney’s inner-city apartment market at the moment, with some confident that the demand created by young professionals and students will keep oversupply at bay. Others are concerned that interest from foreign investors and the number of development plans in the pipeline could mean oversupply is just on the horizon. Perth is similarly placed to Melbourne, with the resources boom leading to more developments in the last few years. With the downturn in mining, vacancy rates are climbing, contributing to price falls. If you’re looking to occupy an apartment in 2015-16, you may be able to buy in low in the Perth inner-city apartment market. If you’re looking to invest, take the time to look and see if a long-term investment before the market rises again is the way to go. In Brisbane, Property Observer commentator Terry Ryder recently discussed the possible oversupply of apartments, mentioning in the June quarter alone 14 new projects (totalling 1400 apartments) were launched. Whilst Terry didn’t feel the situation in Brisbane was nearly as serious as the situation in Melbourne, he did caution that developers shouldn’t pin all of their hopes on foreign investment to sell their projects, with this attitude potentially contributing to future oversupply. At the end of the day, oversupply in an inner- city apartment market could mean you can snap up a brand new apartment when the market is at its lowest. Whether or not this suits your personal circumstances will depend on how long you plan to hold the apartment for, if you plan to live there yourself, and the future projects proposed in your area. Do your research and weigh up the pros and cons. DO YOU HAVE AN INVESTMENT PROPERTY? WE CAN HELP YOU WITH EVERY ASPECT OF PROPERTY MANAGEMENT. FOR ALL THE DETAILS AND MORE, VISIT WWW.HARCOURTSCOMPLETE.COM.AU