Stability Returns To Brisbane Apartment Market
Anyone waiting for the best time to invest in an inner-Brisbane apartment should consider acting now, as research predicts a market tightening and all new supply to be absorbed by mid-2021.
That’s the advice of Place Advisory director Lachlan Walker, who said the group’s latest Quarterly Apartment Reportrevealed a return to market stability with recent sales soaking up current supply.
Mr Walker said with no major new releases expected in the next six months, supply would tighten and there would be growth in the Brisbane apartment market’s next cycle.
“Supply is definitely tightening up suggesting the market is positioning itself for growth as Brisbane moves into its next cycle,” Mr Walker said.
He said Brisbane property prices were more affordable now than they were in 2008. “Brisbane’s potential for capital growth in the medium term is looking ever more positive as population growth and the economy return to increasingly positive trends and new apartment supply diminishes.”
Mr Walker said this quarter’s weighted average price of $674,714 was up 1.7 per cent compared with the previous quarter — a “modest increase”, but a promising result.
Along with an increase in the weighted average price, there were 175 unconditional sales in inner Brisbane during the June quarter.
He said while 54 inner Brisbane projects were still selling off the plan, several had pushed back their expected completion dates.
“Of the 1936 new apartments currently available for sale, 30 per cent are expected to complete construction in the second half of 2018, 31 per cent in 2019 and the balance in 202. This means remaining supply will settle in a more staggered nature, softening any potential negative impacts to the market.”
Brookfield Residential Properties’ Gallery House Stage 2 was a standout performer, recording the most unconditional sales (23) of any inner Brisbane project, with a weighted average sale price of $710,870.
With 12 unconditional transactions and a weighted average price of $1,645,833, sales volumes remain modest in the CBD precinct.
Exceptional results were recorded at Cbus Property’s 443 Queen during the June quarter 2018, with the nine apartments sold off the plan and the highest weighted average sale price for the inner Brisbane market of $1,838,889.
SOUTH OF THE RIVER
Recording 54 unconditional transactions and a weighted price of $693,519, the report said the precinct was fast approaching the end of its new apartment supply with half of the new buildings now finished.
Spyre Group’s Soko Waterfront Apartments sold the most apartments in the precinct for the June quarter 2018 with nine unconditional sales, however the highest weighted average price for the precinct was recorded at Stockwell’s Virtuosa with $1,590,000.