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Flat-out going sky-high

Sunday, 2nd Feb 2014
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With an apartment construction boom under way in the inner city and suburbs, supply is likely to outstrip demand in 2015-16, according to property industry analysts. Urban Development Institute of Australia WA figures show apartment construction in Perth is at its highest level since 2008, increasing 58 per cent in 2012 and 2013. Momentum Wealth managing director Damian Collins said areas with a lot of supply coming onto the market were at a greater risk, so we could see some oversupply in the Perth CBD and surrounding suburbs. “Anywhere you can build a large number of apartments on a smaller block always has a greater risk of a lot of stock being built and, hence, why West Perth, Perth and East Perth are more prone to oversupply than suburban areas.”