Property implosion?
Around the country the apartment oversupply I have previously discussed has started to hit the market and it is already impacting developers and investors. In this video insight I discuss apartment vacancy rates and what happens to the Australian economy when the construction boom ends.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Andrew
:
Hi Roger, one issue I think you may have overlooked is the sharp increase in construction costs these developments are now subject to. The gestation period of a development can be several years and if sale prices are falling and construction costs are rising at a very sharp rate it’s the developers margin that is caught in the middle