What's gone wrong in Burpengary?

[doozer]

About 5-6 years ago there was a lot of optimism shown in the growth potential of the Moreton Bay growth corridor particularly Burpengary. The latest figures though show a dramatic fall in property prices particularly units which are down 15% in value over the last 12 months. Some townhouses are selling $10-20k below their selling prices 6 years ago. Can anyone give some reasons why such a growth corridor has experienced such a downturn recently in an environment of very low interest rates?

 

[Hoffy]

Demand less than supply I guess. Some of the demand side constraints would include: Undesirable location, 40kms from the city. Hellish commute. Supply side problems being the enormous tracts of land available in the vicinity.

 

[marg4000]

Probably a result of an over-confident market 6 years ago followed by the GFC and general doldrums for real estate, particularly properties purchased at the peak of the market.
Marg

 

[strongy1986]

A growth corridor means that it will have large population growth, not large capital growth
Population growth is not a good indicator of capital growth as it will often just be soaking up large parcels of rural land for residential use

Also units and townhouses don't suit the demographics of the area