Melbourne’s apartment market is not doom and gloom

Melbourne’s apartment market is not doom and gloom

3 March 2017

Charter Keck Cramer

 

Charter Keck Cramer’s semi-annual State of Market (SOM) Report for the Melbourne Central City Region (CCR) for H2-2016, has confirmed what they had been saying for a long time — Melbourne’s apartment market has no oversupply of bubble.

This view goes against the grain of what the majority have been saying for years. Namely, that the Melbourne apartment market would face oversupply and see significant impacts to the resales and rental markets. In fact many also thought that oversupply would have happened in 2014 and then in 2015.

Throughout this time Charter has consistently stated that these comments were misconceived and did not appreciate the market’s complexity. Furthermore, many indicators relied upon to suggest the existence of oversupply have had no regard for demand.

According to the Report, “Charter believes that the risks of oversupply in the Melbourne CCR apartment market are progressively dissipating due to the rational behaviour of developers and financiers given the clear slowing of new releases and delayed commencements through 2016.”

 

 

To download the report and read more, click here.