Do you own an apartment investment? I certainly have apartments in my portfolio – so I was surprised to hear about this prediction from AMP Capital’s chief economist Shane Oliver.
He has forecast that apartment prices in capital cities could fall between 15 to 20 percent over the next two years.
In his latest briefing to the investment market, he said that apartments were more vulnerable than houses because “there was a massive multi-dwelling building boom going on in Brisbane, Sydney, Melbourne and Perth”.
“I wouldn’t be surprised to see outright price falls in apartments in Sydney, Melbourne, Brisbane and Perth.”
“So people are better off waiting until the dust settles to see if there are any opportunities to buy apartments with a lower price tag.”
“Obviously if you are buying in an area where there are lots of cranes around, the price falls are going to be greater.”
I tend to take ‘the sky is falling’ predictions of gloom such as this with a grain of salt – but Dr Oliver’s prediction is in line with my belief that a recession is coming to the Australian economy.
In fact, I so strongly believe a recession is coming that I’ve prepared a Recession Report to help educate investors about what is to come. If you’d like a free copy of this report, feel free to email me at firstname.lastname@example.org.
After all, as I always say, forewarned is forearmed – and education is your key to success as a property investor, now and always.