Invest
Unit oversupply fears may be overblown
While there has been ongoing anxiety surrounding the potential for oversupply in Australia’s major capital cities, these may have been exaggerated, according to a property research house.
Unit oversupply fears may be overblown
While there has been ongoing anxiety surrounding the potential for oversupply in Australia’s major capital cities, these may have been exaggerated, according to a property research house.
CoreLogic head of research Cameron Kusher says Sydney is the least at risk of oversupply due to ongoing overall housing undersupply.
“At the moment, I wouldn’t say it's too much of an issue in Sydney particularly and the reason for that is you’re not seeing an underperformance of units relative to houses,” Mr Kusher told Nest Egg.
“[With] the price point you’re looking at for houses now, units have kind of become the only option for people looking for people to buy into the market.”
Meanwhile, Melbourne’s growing housing stock will likely face a mixed bag of factors.
“We’re obviously seeing a really high level of unit supply coming online in Melbourne but we’re also seeing really strong population growth so when you compare the two, perhaps there’s not as much of an oversupply as we previously thought,” Mr Kusher said.
“But we’re also seeing an underperformance of units so there’s probably a mild oversupply because I think houses are still in reach for people to buy whereas they’re not necessarily in Sydney.”
However, the same cannot be said of Brisbane where the number of empty high rises is already evident.
“Brisbane is probably the area where we’re seeing the most evident oversupply of units and there’s still a lot more in the pipeline,” Mr Kusher said.
“I live in Brisbane and as you walk around you can see a lot of units completed, a lot of the buildings have available ‘for rent’ signs all over them and there’s a lot more to still come up for completion over the next couple of years.
“Overall, I think there’s not too much oversupply in terms of total housing in Sydney and Melbourne, but there is a bit of unit oversupply in Brisbane and certainly potential for some in Melbourne.”
RELATED ARTICLES
Property
Hidden cost, higher prices: Why a council fee fight matters for Australia’s housing pipeline
A dispute between the Housing Industry Association and Goulburn Mulwaree Council over development cost estimates is more than a local skirmish—it spotlights a systemic pricing lever that can compound ...Read more
Property
Why Aussie homes are turning into stepping stones for the new generation
A new cohort of buyers is treating their first property as a launchpad, not a destination—and the mortgage industry is pivoting in lockstep. Read more
Property
Rate cuts ignite an upsizing wave: how to win the next phase of Australia’s housing cycle
Cheaper money is reviving borrowing capacity and confidence, and upsizers are back in force — most visibly at auctions where clearance rates have lifted to yearly highs. The ripple effects extend ...Read more
Property
Rate anxiety fades, affordability bites: What Australia’s property market shift means for business
Australian buyers are no longer driven primarily by interest rate fears; the binding constraint is affordability. New research shows price pressure, not policy moves, is shaping behaviour—forcing ...Read more
Property
South Australia's first-home buyer boom fuels a frenzy for lenders, builders and retailers
South Australia has quietly become the nation’s most active first‑home buyer market, fuelled by falling rates, generous state incentives and a responsive broker ecosystem. Read more
Property
Melbourne’s turning point: the 2025 playbook for investors—and the 2026 upside
After lagging other capitals, Melbourne is quietly moving off the floor. Prices have logged several consecutive months of growth, rental markets remain tight, and forecasts point to a sharper upswing ...Read more
Property
Brisbane hits the million-dollar mark as growth takes a detour and investors eye new opportunities
Brisbane has crossed the symbolic $1 million median for houses, but the more investable momentum is in units—and the growth curve is flattening. Read more
Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more
Property
Hidden cost, higher prices: Why a council fee fight matters for Australia’s housing pipeline
A dispute between the Housing Industry Association and Goulburn Mulwaree Council over development cost estimates is more than a local skirmish—it spotlights a systemic pricing lever that can compound ...Read more
Property
Why Aussie homes are turning into stepping stones for the new generation
A new cohort of buyers is treating their first property as a launchpad, not a destination—and the mortgage industry is pivoting in lockstep. Read more
Property
Rate cuts ignite an upsizing wave: how to win the next phase of Australia’s housing cycle
Cheaper money is reviving borrowing capacity and confidence, and upsizers are back in force — most visibly at auctions where clearance rates have lifted to yearly highs. The ripple effects extend ...Read more
Property
Rate anxiety fades, affordability bites: What Australia’s property market shift means for business
Australian buyers are no longer driven primarily by interest rate fears; the binding constraint is affordability. New research shows price pressure, not policy moves, is shaping behaviour—forcing ...Read more
Property
South Australia's first-home buyer boom fuels a frenzy for lenders, builders and retailers
South Australia has quietly become the nation’s most active first‑home buyer market, fuelled by falling rates, generous state incentives and a responsive broker ecosystem. Read more
Property
Melbourne’s turning point: the 2025 playbook for investors—and the 2026 upside
After lagging other capitals, Melbourne is quietly moving off the floor. Prices have logged several consecutive months of growth, rental markets remain tight, and forecasts point to a sharper upswing ...Read more
Property
Brisbane hits the million-dollar mark as growth takes a detour and investors eye new opportunities
Brisbane has crossed the symbolic $1 million median for houses, but the more investable momentum is in units—and the growth curve is flattening. Read more
Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more
