7:04AMMonday Apr 21st, 2014

Demand-to-Supply Ratio Assisting Property Investors

buyinganinvestmentproperty24According to the research director of Redwerks, Jeremy Sheppard, the time may be approaching for investors to capitalize on “no-go zones” like the Gold Coast, Sunshine Coast and Melbourne.

With the previous oversupply of Gold Coast and Sunshine Coast high-rise apartments for the influx of retirees moving to holiday or resort style locations, the area’s property market dwindled due to the eventual lack of demand.

But as the market appears to be recovering, property investors could potentially take advantage of its past volatility.

Investors should take advantage of markets where the demand exceeds supply by the greatest possible margin and, as it so happens, units and houses in the Gold Coast and Sunshine Coast have been experiencing an increasing margin of demand-to-supply over the past year.

Although the ratio is still low, both areas could represent a good buying opportunity by late 2013.

Melbourne experienced a similar oversupply of apartment complexes over the last few years, and although the ratio of demand-to-supply for units is still low, it has increased for houses.

So when buying an investment property, don’t always write-off an area straight away without checking out previous trends in the area.

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