The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
FINAL CHANCE TO REGISTER FOR URBANITY-25 JOIN MORE THAN 550 ALREADY ATTENDING
LAST CHANCE TO REGISTER FOR URBANITY 550+ ALREADY ATTENDING
REGISTER NOWDETAILS
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
490
print
Print
OtherTed TabetFri 01 Mar 19

Confidence Returning to Inner Brisbane Apartment Market

feb97cb9-cf47-47dd-8d1c-b3e99f3789f0

Brisbane's apartment pipeline, which suffered throughout 2018, looks to have turned a corner thanks to the improving conditions which could bring the city’s apartment supply into balance.

While property values are continuing to fall in many parts of Australia, Brisbane's market seems to be steadily gaining pace — directly benefitting from Sydney and Melbourne’s slowdown.

During 2018 apartment values in Brisbane fell by 0.7 per cent while house values rose by a modest 0.4 per cent, an overall growth of 0.2 per cent.

According to Colliers International, declining supply in the apartment sector is now stimulating developer interest, with a number of key factors contributing to the improving market conditions.

The new potential state of an undersupplied market has created a renewed sense of urgency as the city continues to welcome approximately 25,000 new residents per year.

Queensland also benefits from the highest employment growth reaching 4.3 per cent for the 12 months to September 2018.

Related: Are One-bedders Holding Brisbane's Apartment Market Back?


Status of new apartment projects in inner Brisbane

Image: projectadvice.com.au

At this time there are 185 new major apartment projects proposed across inner Brisbane, totalling around 48,250 apartments, however, just some 30 per cent are under construction and an addition 17 per cent are “probable” over the next two to three years.

“While there remains come uncertainty around the upcoming Federal Election and impact of the recent Banking Royal Commission, the declining supply is stimulating developers’ interest,” Colliers International executive James Forrester said.

“By the end of 2019, approximately 3,000 apartments of the current committed supply will remain under construction in the inner Brisbane.”

“This is only a fraction of what we experienced in late 2017 when there were over 15,000 apartments under construction.”


Inner Brisbane - Underlying Demand vs Actual Supply

Image: projectadvice.com.au

Brisbane, which was flooded with units 18 months ago, has since seen close to two-thirds of apartment projects planned for the city ditched or deferred.

Surprisingly, no new apartment projects launched over the last quarter, however by the end of the first half of 2019 a large number of new apartment projects are anticipated to launch across the river city.

Liveability, affordability, scale and future economic prospects has led analysts to suggest that Brisbane has the foundations to grow over the course of 2019.

Consultancy BIS Oxford Economics expects new apartment completions in Brisbane this calendar year of 5,700 — almost half of the 10,700 they peaked at in 2017.

“The site transactions volumes within 5km radius of the CBD bottomed in 2018 when over $350 million in sales was recorded, compared to $1 billion at the peak of the market in 2015.”


Brisbane's apartment market in numbers

• Brisbane average apartment price – $831,884
• Brisbane most popular apartment configuration – two-bedroom, two-bathroom makes up 53 per cent of transactions


Looking ahead...

Corelogic is betting on another year of modest gains for Brisbane supported by interstate migration.

"Net migration rates into Brisbane should drive growth into 2019," CoreLogic head of research Tim Lawless said.

"It's more important as interstate migration is more likely to include buyers."

Economic forecaster BIS Oxford Economics says Brisbane will lead the capitals, with 13 per cent property price growth predicted by 2021, although the majority of this growth will occur in 2021.

Moody’s Analytics expects apartments to outperform houses throughout greater Brisbane in 2019, as the city continues to 'defy' the national housing downturn.

ResidentialAustraliaBrisbaneReal EstateSector
AUTHOR
Ted Tabet
The Urban Developer - Journalist
More articles by this author
website iconlinkedin icon
ADVERTISEMENT
TOP STORIES
Warren and Mahoney Western Bulldogs Women's Health and Leadership Hub HERO
Exclusive

Beyond the Boys’ Club: Inclusive Architecture Disrupting Sporting Precincts

Leon Della Bosca
7 Min
Exclusive

Inside the $10m Heritage Refit of Sydney’s $25,000-a-Year Members’ Club

Taryn Paris
4 Min
Kurraba Point 93 Kurraba Road TUD PLUS
Residential

Council Over Court: How HFO Won Rare North Sydney Approval

Vanessa Croll
7 Min
Exclusive

Why Sentinel is Betting Big on Olympic City Office Sector

Phil Bartsch
5 Min
The Port of Brisbane has released its Vision 2060 which details the need for inland rail connectivity
Infrastructure

Brisbane Port’s $15bn Future Faces One Big Obstacle

Renee McKeown
5 Min
View All >
An aerial view of Ipswich, whose suburb Springfield Lakes, had the highest number of house sales for Queensland in Q2, 2025.
Residential

Ipswich Suburb Leads Queensland House Sales

Marisa Wikramanayake
Goldfields Kyneton Central Edgecombe Road precinct rendering
Development

Goldfields Forges Ahead on $150m Kyneton Central Hub

Leon Della Bosca
Development

Zen Group’s West End Towers Greenlit

Taryn Paris
Brisbane builder-developer Zen Group has won approval from Brisbane City Council for its two-tower project at West End..…
LATEST
An aerial view of Ipswich, whose suburb Springfield Lakes, had the highest number of house sales for Queensland in Q2, 2025.
Residential

Ipswich Suburb Leads Queensland House Sales

Marisa Wikramanayake
5 Min
Goldfields Kyneton Central Edgecombe Road precinct rendering
Development

Goldfields Forges Ahead on $150m Kyneton Central Hub

Leon Della Bosca
3 Min
Development

Zen Group’s West End Towers Greenlit

Taryn Paris
2 Min
Court Place in the Subi East precinct is set to deliver 447 new homes, including 300 affordable and 147 social homes in a prime location just four kilometres from the Perth CBD.
Community

Providers Selected for Subi, East Freo Housing Projects

Renee McKeown
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/confidence-returning-to-inner-brisbane-development-site-market