Surge in apartment settlements in Australia is rising property risk
There are rising risks from a surge in apartment settlements in Brisbane and Melbourne, warns Bank of Queensland chairman Roger Davis, with buyers increasingly finding it difficult to complete off-the-plan purchases. "Arguably a looming 'settlement bulge' in Melbourne and closer to home, in Brisbane, is creating an identifiable stress point in the economy which needs to be closely monitored," warns Davis.

Bank of Queensland chairman Roger Davis has highlighted the risks from a looming surge in apartment settlements in Brisbane and Melbourne amid signs more buyers are facing difficulties completing off-the-plan purchases.

Mr Davis told shareholders at the bank's annual general meeting on Wednesday the lender was "naturally cautious" on residential property, pointing to settlement risk and high prices in east coast cities.

While arguing there was not an economy-wide housing bubble, he stressed that property prices in key areas were "high," and a coming risk was the high number of off-the-plan apartments due to be settled in Brisbane and Melbourne, especially.

These two cities have the largest number of units to be completed over the next years, according to estimates from the Reserve Bank.