{"id":27753,"date":"2020-09-22T08:34:17","date_gmt":"2020-09-21T20:34:17","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=27753"},"modified":"2020-09-22T08:34:17","modified_gmt":"2020-09-21T20:34:17","slug":"the-sydney-danger-zones-with-an-oversupply-of-units","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/the-sydney-danger-zones-with-an-oversupply-of-units\/","title":{"rendered":"The Sydney danger zones with an oversupply of units"},"content":{"rendered":"

PHOTO: Construction in Parramatta, one of the suburbs with the biggest unit supply. Picture: John Fotiadis Source: News Corp Australia<\/em><\/span><\/strong><\/p>\n

Multiple suburbs have more than 1500 apartments still in the pipeline over the next two years despite falling demand for units \u2013 a situation that has put buyers in a dangerous position.<\/p>\n

Parramatta, Mascot and Rouse Hill in the northwest have topped a list of Sydney suburbs \u201coversupplied\u201d with apartments.<\/p>\n

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These suburbs each have more than 1500 units in the pipeline over the next two years, which will increase the current supply of apartments by 13 per cent or more.<\/p>\n

A similar situation was unfolding in Gosford on the Central Coast, where close to 1900 units were set to be built, which would increase unit supply by 73 per cent.<\/p>\n

The oversupply in these areas has raised the risk of dangerous price reductions for buyers of units sold off the plan, according to RiskWise research.<\/p>\n

RiskWise chief executive Doron Peleg said there were already risks associated with off the plan units but they have been exacerbated during the COVID-19 pandemic.<\/p>\n

One of the biggest risks is that the glut of new apartment projects in some areas will coincide with reduced buyer demand \u2013 particularly from investors, he said.<\/p>\n

Investor activity was low before the pandemic because of tighter lending restrictions but falling rents and rising vacancies have created a further disincentive for new investors to purchase units.<\/p>\n

READ MORE VIA NEWS.COM.AU<\/a><\/p>\n

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