Brisbane may face glut in units

The Brisbane property market is facing an oversupply of residential units in the CBD and inner-city, according to the Midwood Queensland Investment Report. The report says the first signs of oversupply have already been detected with rents falling in the CBD and vacancies increasing.

Yet a total of 744 new apartments will be completed before the end of next month – a record number in six months. Vacancy rates are not yet available for June from the Real Estate Institute of Queensland but data for December 2003 show a rate of 2.9 per cent, which rose to 3.7 per cent in March.

The Midwood report is contrary to the trend forecast by other property industry analysts for Brisbane. PRDnationwide said it saw no evidence of an oversupply and the Office of Economic and Statistical Research has reported a 2 per cent vacancy rate for the June quarter. Matusik Property Insights said last month that demand for new CBD and inner-city units has outstripped supply.