Prices are not dropping even when thousands of units are hitting the market every month. The reason is because foreign buyers like to park their money out of their country so it won't get confiscated.
When there are multiple real estate agents all of whose promotional material is in Chinese in an English speaking country you have to be willfully blind not to see cause and effect.
[Citation needed]
And, furthermore, exporting housing services is a huge, underrated opportunity: http://www.slate.com/blogs/moneybox/2013/05/19/exporting_hou... . We should be doing a lot more of it.
I can't give you a citation on who is buying the units because that is obfuscated by design. If the people trying to hide their wealth put their names on the deeds they have just made sure they stay alive in the dungeon until the sale was finalized.
So all you have is a gut feeling.
Thousands of units hitting the market each month is a LOT.
Seeing three separate real estate agents having nothing but Chinese brochures in their offices tells me they aren't expecting locals to be buying from them.
>Thousands of units hitting the market each month is a LOT.
http://www.abs.gov.au/ausstats/abs@.nsf/mf/8731.0
This has been going on for close to 10 years now.
Not "thousands per month" for the mysterious city you live in.
For comparison, in 2017 Seattle got 10k new apartments which was enough to match the growth caused by Amazon's hiring and generally keep the prices sane.
So a thousand a month for the city the size of Seattle is good enough to counteract one of the biggest population growths.
I see 5 50+ story building completed in the last three months, with another 4 being build. Prices are not dropping. Buildings are not being occupied.
Well in fairness, even with all else being equal, units entering the market doesn't imply prices dropping. It only should imply prices being lower than they otherwise would be.