The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
22 DAYS UNTIL OUR UNMISSABLE FLAGSHIP CONFERENCE MORE THAN 500 ALREADY ATTENDING
22 DAYS UNTIL OUR FLAGSHIP CONFERENCE 500+ ALREADY ATTENDING
SECURE YOUR SPOTDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
OtherStaff WriterMon 27 May 13

Colliers reveal Brisbane new apartment sales highest since 2004

A

Colliers International

’s latest apartment report focuses on the broadening demand scenario across the Inner Brisbane precincts as in addition to the drivers that have led to a nine year high in unconditional sales.

The market saw the number of unconditional sales rise to 540 across 41 surveyed projects during the first quarter of 2013, the strongest result since September 2004.



 

While a large proportion of these sales can be attributed to a small number of projects, transaction volumes across many projects experienced some uplift on previous periods.

The release of eight new projects aided the lift in unconditional sales, contributing approximately 250 between them to the total transaction volume.

For the first time since 2008 the Inner North was not accountable for the majority of sales recorded in a single quarter.

The Inner South made up just under half of all sales (46%) followed by the Inner North (32%), Inner West (16%), Inner East (4%) and the CBD (2%).



From an economic perspective, national housing finance commitments have shown signs of responding to the easing monetary policy cycle over the past 12 months with the cumulative effect of 125 basis points worth of interest rate reductions improving lending conditions for borrowers.

First home buyers were reportedly largely absent from the new apartment market even though they are incentivised further with the $15,000 State Government grant still applicable to those purchasing a new dwelling. The effectiveness of this affordability measure is questionable as the number of buyers from that segment has declined in Queensland.

With inflation remaining in the Reserve Bank’s target range of 2-3% and economic growth likely to be below trend, the RBA has stated that “there could be scope to ease policy further should that be necessary to support demand”. Considering the lag between interest rate reductions and improvements to housing finance, we could expect to see continued growth in the number of total commitments in response to the cash rate reductions in October and December 2012 and most recently May 2013.

Looking forward, Colliers International Research estimates there is in the order of 3,000-3,500 apartments that may be released for sale over the next 12 months, just under one third of which are either currently in pre-release or expected onto the market in the June quarter.



 

Sales activity is expected to remain firm due to a range of factors; most notable are the improving borrowing environment and higher quality of stock coming online. While the focus of new development in Inner Brisbane has not shifted away entirely from the Inner North, acquisition and planning activity has seen an increase over the previous 12 months across the Inner South, particularly West End, Woolloongabba and Dutton Park. An increase in activity in the latter two suburbs is a result of geographic flow over from the already active West End and South Brisbane.

Firm population growth and significant infrastructure investment have been identified as key drivers for investment in the Inner South by developers and apartment purchasers.

Investors are expected to maintain their position as the most active market participants with apartments delivering stable income returns compared to other asset classes, depreciation benefits and the ability to hold property in a Self-Managed Super Fund (SMSF).

OtherInfrastructureInternationalBrisbaneOther
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Bates Smart Richmond Sportslink HERO
Exclusive

BtR Focus Drives Bates Smart’s Richmond Sportslink Concept

Leon Della Bosca
6 Min
Exclusive

Carparking Correlation: How Parking Fees Provide Office Sector Health Check

Taryn Paris
6 Min
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy to the Sound of Cannons: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
5 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
View All >
Construction workers building social housing in Gosford, New South Wales.
Affordable & Social Housing

Housing Australia Adds 18,000 Homes as Contracts Confirmed

Marisa Wikramanayake
Dexus Sydney CBD Supertall EDM
Planning

City Backs Height Boost for Sydney Supertall Towers

Vanessa Croll
Residential

Thirdi Lifts Covers on 500-Home Precinct at Gladesville

Lindsay Saunders
The developer says build-to-rent and build-to-sell would be part of the transformation of an ageing Sydney shopping cent…
LATEST
Construction workers building social housing in Gosford, New South Wales.
Affordable & Social Housing

Housing Australia Adds 18,000 Homes as Contracts Confirmed

Marisa Wikramanayake
2 Min
Dexus Sydney CBD Supertall EDM
Planning

City Backs Height Boost for Sydney Supertall Towers

Vanessa Croll
3 Min
Residential

Thirdi Lifts Covers on 500-Home Precinct at Gladesville

Lindsay Saunders
2 Min
Industrial

Data Centres Drive Goodman Group A-REIT Success

Taryn Paris AND Shravanth Reddy
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/colliers-reveal-brisbane-new-apartment-sales-highest-since-2004