A recent report by valuation firm m3property found that more than one in four new apartments completed in the Brisbane CBD since 2016 remain unsold. That’s a total of 1,500 apartments that remain unsold across the inner city. And those that have been purchased are now selling for a loss.

According to m3property, purchase of apartments within a five-kilometer radius of the CBD have copped a 3% loss when reselling their apartments. In the inner north in areas such as Fortitude Valley and Newstead, this loss is over 7%.

The firm does predict that sales activity will increase or strengthen over the next six months and vacancy rates will decline as new construction has been limited.

Regardless, it’s a lesson to investors and comes back to the simple economics of supply and demand. It’s crucial when investing that you buy in mind with the local market demands.