Is there really oversupply in the Queensland market?
Last Thursday the who’s who of the off the plan industry from around Queensland came together to participate in our panel discussion and networking event, Industry Insight Night. The event was highly topical as there has been a lot of discussion about the Queensland property market regarding oversupply and the new policies regarding foreign property investors. The leading panel of industry leaders, moderated by Investorist Founder Jon Ellis, included Peter Neale, State Director of Residential Projects at Savills, Craig Wright, Sales and Marketing Manager at Property Solutions, Andrew Scriven, Director of Residential at Colliers, and Andrew Erwin, Partner at Property Tourist and Conversionist.
Hosted at the Gambaro Hotel by our Queensland State Managers Sam and Adam, over 120 people from some of the state’s leading development, project marketing, finance, and real estate companies came together to share ideas and a drink or two. The event was filmed live and streamed online so our interstate and overseas members could watch and ask their questions via an online chat.
Jon Ellis opened the “very frank industry discussion” by asking panellists what they thought of the apparent “oversupply” of the market that has been depicted in the media recently. Andrew Scriven noted that while there has been an increase in the number of apartment projects being developed, this is because more people want to live in inner-city locations and therefore land sales have decreased. Scriven highlighted findings from a recent report that showed “the projects being created now don’t even meet the long-term dwellings rate required in Queensland”.
Andrew Erwin agreed that more people are looking to purchase property based on location and amenities, which is something high-density living provides.Whilst consumers may be wary of purchasing off the plan after hearing a few stories in the media, the key to increasing their understanding of the positives is to provide them with “good data, good research, and above all else good customer service.”
Craig Wright discussed his research model when selecting locations for developments, saying that ultimately “it will always come down to infrastructure, economics and employment, demographics, and population movements.”
When asked about the difference between the Gold Coast and Brisbane markets, Peter Neale commented that the Gold Coast was in the midst of a “resurgence”, with both local and international developers purchasing land “because they can see there’s an opportunity and there’s a market requirement.” Whilst Brisbane does have more high density projects, there are still many areas that lend themselves to great opportunities for new projects. The key, said Peter, is to “build something that’s a little bit different”.
Other topics discussed include how buyers have changed in the past decade or so, the differences between selling to local vs. offshore buyers, and strategies for surviving, and thriving, amidst the changing market conditions.
Want to hear more industry insights? We’ll be hosting another Investorist Live Industry Insight Night in Melbourne later this month. Enquire now to find out how you can receive an exclusive invitation to attend in person or participate online.