Where are the risky areas of the market?

This oversupply is most prevalent in Queensland, which has a dwelling surplus of close to 60,000 – most of which is most likely made up of apartments located in Brisbane centre. Victoria is also oversupplied, according to the research paper, with a dwelling surplus of over 40,000. Similar to Brisbane, many of these oversupplied dwellings are apartments near to Melbourne’s centre. One of the best ways to spot risky markets, and property that’s unlikely to appreciate in value, is to identify areas where dwelling oversupply is most prevalent. A recent research paper published by the Australian National University found that as of June 2017 the surplus of dwellings in Australia could be as much as 164,000.

The research paper also identified Western Australia as an area with a surplus of properties. Much of this surplus was created in part by the mining boom, in towns where the population swelled then quickly fell when the boom period came to and end.

On the other hand areas on the outer fringes of large capital cities, such as Melbourne and Sydney, were identified as having dwelling shortages. This may indicate that property in these locations will increase in value over the long term.

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