Apartments under construction in inner Brisbane. Photo: Glenn Hunt.NEARLY 20 per cent of the apartments in inner Brisbane are sitting empty and more than 50 projects have been shelved or ditched altogether as landlords struggle to survive the city’s oversupply crisis.More than 10,000 new apartments have been abandoned or deferred by developers in the past 12 months amid waning investor demand, rising construction costs and lending restrictions, according to a new report by economic forecaster BIS Oxford Economics. GET THE LATEST REAL ESTATE NEWS DIRECT TO YOUR INBOX HERE The building frenzy in the heart of Brisbane has been well publicised, with a rise in off-the-plan sales since 2013 allowing a greater number of projects to reach sufficient precommitment levels to begin construction. Apartments under construction in Newstead, Brisbane. Photo: Glenn Hunt.But record levels of apartment completions have tipped the market into oversupply, putting pressure on rents and prices and resulting in a growing number of “ghost houses”, according to the Inner Brisbane Apartments 2018-2025 Market Brief.There are signs things are improving though, with the latest CoreLogic Home Value Index revealing the fall in unit prices in Brisbane slowed by 0.6 per cent in the past month. Unoccupied dwellings comprised 17 per cent of total apartment stock across inner Brisbane on the night of the 2016 Census, according to the report. That’s up from 11 per cent on the night of the 2011 Census. FAMILY SNAPS UP A WATERSLIDE WONDER More from newsParks and wildlife the new lust-haves post coronavirus20 hours agoNoosa’s best beachfront penthouse is about to hit the market20 hours ago $400K PRICE JUMP IN JUST 1.5 YEARS COUPLE’S $43K-A-MONTH REAL ESTATE COUP BIS Oxford Economics senior manager of residential property Angie Zigomanis said many unoccupied apartments were kept as second homes or speculative investments, but a number were also empty because landlords simply couldn’t find a tenant for them. Apartment blocks at Portside, Hamilton. Photo: Claudia Baxter.“Some investor demand for IBA apartment stock may be supported by its relative affordability in comparison to equivalent apartment stock in Melbourne and Sydney, although this is unlikely to absorb substantial new apartments stock while the market is in oversupply,” the report said. “Coupled with restrictions on interest only loans (a mainstay of investors) and the Queensland government introducing a stamp duty surcharge for overseas investors, we expect to see significantly fewer projects being able to achieve the pre-sales requirements for projects to commence. “Sharply rising construction costs have also meant that developer’s margins have been eroded, impacting the next round of projects, particularly if there is a slump in prices making planned projects no longer viable.” The vacancy rate for the inner Brisbane area climbed to 4 per cent in the December quarter of 2017. Angie Zigomanis, senior manager – residential property for BIS Oxford Economics.Mr Zigomanis said landlords would continue to struggle to find tenants for inner Brisbane apartments for another two to three years.“They’ll always be competing against the latest and greatest new stock, so they’ll need to offer incentives to make their properties more attractive,” he said.This financial year, BIS Oxford Economics estimates about 8,300 apartments will be completed in the inner Brisbane area — a new record annual rate of apartment completions. West End, Brisbane CBD and the Inner North areas are likely to see the highest number of apartments come to market, followed by Toowong and Woolloongabba.