apartment glut

The Weekend AFR had an article about Australia's burdening Apartment Glut:

http://www.afr.com/p/business/property/apartment_glut_threat_to_inner_cities_LrvQrJQRnnAFudg3wE0BAJ

New inner-city apartments are flooding into the nation’s capitals at up to three times the markets’ ability to occupy them, prompting red-light warnings to investors.

Louis Christopher warns, "Investors are buying into very high vacancy rates. Many are going to have to cut rent to find, or keep a tenant."

Christopher Koren (Buyers Advocate) says "We are beginning to see high-rise ghost towns."

Sadhana Smiles, CEO of Real Estate Agency, Harcourts (Vic) warns "From a sales perspective this is pure and simple. Supply and Demand. The rising supply is not being matched by demand"

She has had to drop rent on one of her own rentals from $480 to $400 a week in Richmond just to secure a tenant.

Interesting times. Once this spills into the rest of the market, rents will be plunging around the country.