National property developer OpenCorp expressed their confidence in the potential of the Brisbane market, pointing to the most recent data confirming the Brisbane market’s fundamental stability.
Recently published data in the CoreLogic-Moody’s Analytics Australian Home Value Index Forecast predicted that the Brisbane apartment market will remain steady beyond 2017, with 1.1 per cent and 1.3 per cent growth anticipated for 2018 and 2019 respectively, according to OpenCorp Director Allister Lewison.
“Currently we are seeing many articles highlighting a struggling Brisbane property market, but it’s important to remember that these are short-term issues and that the fundamentals of the Brisbane market remain strong,” Mr Lewison said.
According to a PRD nationwide report, in 2005 prior to the Melbourne Commonwealth Games, the annual median price growth in the Parkville area was 6.2%. However, in the year of the Games and the year after, prices increased by 11.4% and continued to grow for the next 24 months. This indicated the positive impact of the Commonwealth Games on the property market in Parkville and its neighbouring suburbs.
“The 2018 Commonwealth Games and the influx of both government spending and tourism dollars that will flow into the economy will spark growth within the area,” Mr Lewison said.
“The data is there to back the assessment that there is depth in the Brisbane market and also to support that the fundamentals are in place. Apartments are selling well and will continue to sell well in the foreseeable future.”
Urbis Associate Director of property, economics and research Paul Riga reiterated this confidence, and said the vacancy rate of 2.3 per cent for new apartments is only a slight increase on the September quarter 2016, which recorded 2.2 per cent.
“Given that 2016 has seen the highest number of new apartments to ever settle within inner Brisbane, this is a positive result. There is also evidence that the Brisbane market is self-regulating,” Mr Riga said.
Based on Residential Tenancies Authority (RTA) data, positive absorption of new apartment rentals was evident through the 24 per cent increase in bond lodgements for the December quarter, compared to the same period 12 months prior.
“The key point is that while we have seen a record number of new apartments completing, the market is absorbing it,”Mr Riga said.
OpenCorp entered the Brisbane market in 2013 and since that time has invested $360 million in a broad range of developments within inner and middle ring suburbs.