Apartment woes

THE unit market would stumble next year as investors realised they had over-stretched themselves in the recent property boom, independent economist Don Stammer said yesterday.

Off-the-plan sales for apartments soared during the recent property boom, but Dr Stammer said many of those who put down a deposit would find it tough when the time came to settle.

"A seriously weak part of the economy will be apartments off the plan," he said.

"Some might find it hard to get the finance and some might find they've over-stretched. I really do think there will be some forced sales in the apartments off the plan market next year."

That, however, would provide investors with an opportunity.

"For investors, the best time to pick up a asset is during these forced sales."

The assessment was one of the few negatives -- consumer spending would be weak -- Dr Stammer could see in the Australian economy next year.

He told a conference in Brisbane he expected the economy to be stronger next year, even if crude oil continued at high prices.