I keep reading about an undersupply of properties but that’s not necessarily correct.
While there’s an undersupply is some regions, there’s clearly too many properties in others. If you’ve been following my blogs you’d know I’m concerned about a looming oversupply of inner CBD apartments in Melbourne and to a lesser extent in Brisbane.
And there’s also no shortage of properties in some of our outer suburbs.
According to Prosper Australia spokesman David Collyer, stale stock on the market in Melbourne ballooned from 19,800 to 31,600 properties in the last three months and much of this is accumulating in new suburbs on the city fringe.
“In the last three months alone, ‘Stale Stock’ in Melbourne postcodes 3000-3207 has ballooned from 19,800 to 31,600,” according to Prosper Australia Campaign Manager David Collyer
‘Stale Stock’ is property on the market for more than sixty days and unsold. Gardens have been primped, interiors polished up, advertisements run, open for inspections attended, auctions conducted and … no sale!
Hardest hit are the first home buyer hunting grounds in Melbourne’s west with over 5,600 brand new houses stale and more being added daily: Derrimut, Werribee, Point Cook (postcode 3030, stale 2650), Tarneit, Truganina, Hoppers Crossing (postcode 3029, stale 1932), Roxburgh Park and Craigieburn (postcode 3064, stale 1095).
“To give these figures perspective, only 564 Point Cook properties sold in all last year,” Collyer said. “This overhang is massive.
“Developers miscalculated. They built way ahead of buyers and have now come to a grinding halt. This points to abrupt and widespread unemployment in the construction trades as projects are completed and workers laid off.
The ‘Stale Stock’ figure has been collated by Prosper Australia from data published by SQM Research. It points directly at a major correction as the supply and demand equation is restored by downward price movement right across Melbourne.
Prosper was the tax reform group that called for a “home buyers’ strike” in March.
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