With so much concern about lack of housing supply, it’s worth remembering a time when there was a high supply of apartments into the private market. That time was the 2010s. New analysis from Core Logic has identified 65 unit markets in Sydney and Melbourne where values are below record highs from the 2010s. In some of these markets there is a high portion of vendors willing to sell at a loss. Despite this though, the report notes, buyers aren’t biting.
The reason? The wrong kind of supply.The report’s author Dr Eliza Owen calls out the good reasons why and (we think) reminds us to not repeat the sins of the past:
“The mid-to-late 2010s saw plenty of new supply, but because that supply was driven by investors looking to make a fast profit, the nature of supply was not necessarily suited to today’s buyer. Some apartments were very small, some were in high-density buildings, and too many of the buildings would later show defects. For owner-occupiers who want somewhere to live long term, this is unsuitable.” Dr Eliza Owen, Core Logic |