The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
UPCOMING EVENT - INDUSTRIAL AND LOGISTICS SUMMIT 16 OCTOBER, SYDNEY
INDUSTRIAL AND LOGISTICS SUMMIT - TICKETS NOW ON SALE
LEARN MOREDETAILS
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
82
print
Print
ResidentialFri 24 Aug 18

Brisbane Apartment Market at ‘Turning Point’

b7988f6a-354f-4387-97f0-13b272e17148

Despite the continued decline in off-the-plan transactions, a new report reveals it’s the owner-occupier market underpinning strong demand for inner-Brisbane’s apartment stock.

While the quantity of sales dropped to 130 in the second quarter, down from 154 in the first quarter, the weighted average sale price for inner Brisbane’s apartment market increased by $87,000 to a high of $767,000, Urbis research reveals.

“The owner-occupier market were firmly responsible for the increased price-points in the quarter,” Urbis property economics and research director Paul Riga said.

Given the tightening of investor lending conditions and subsequent reduced investor activity, the owner-occupier market made up almost half of all buyers (48 per cent) of inner Brisbane’s apartment stock.

“Importantly, the majority of these sales are in projects that are in presale stage or under construction, which indicates that buyers are becoming more willing to transact off-the-plan if the right opportunity presents itself.”

Riga said the uptick is thanks to two higher priced sales, located in Brisbane’s CBD for $1.28 million and Brisbane's inner east for $1.33 million.

Related: World’s Tallest Man-Made Waterfall Wins Approval in Brisbane

Corelogic data indicates Brisbane’s property market fundamentals are strong in comparison to its southern capital city counterparts.

This was supported by BIS Oxford Economics, which referred to Brisbane’s property market as a "surprise performer" with house price growth of 2 to 3 per cent expected in 2019-20, forecasting greater growth of six per cent in 2020-21.

In its Residential Property Prospects 2018 to 2021 report, BIS' forecast of an oversupply of dwellings in Brisbane’s apartment market will ensure an upside won’t be immediate.

However, Riga believes the turnaround for Brisbane’s apartment market will be sooner rather than later.

“Brisbane is at a turning point."

“There are limited number of projects entering the market, so we’re not going to see that level of supply coming through and this will give demand an opportunity to catch up.”

Project pipeline

Inner Brisbane approvals for the quarter totalled 1674 apartments.

Total approved future supply for Brisbane’s inner south apartment market currently sits at 8481 while Brisbane’s inner north currently has 7,653 approved apartments.

Riga says only 9 per cent of this is currently selling to market, with three to four projects comprising roughly 800 apartments, expected to launch to market next quarter.

“It’s not getting any easier for developers launching new projects, so we aren’t expecting launches to increase over the coming quarters,” Riga said.

“Any new launches have to contain a real selling point, a point of difference, and this has resulted in some exciting potential projects expected over the coming 12 months.”

ResidentialAustraliaBrisbaneReal EstateSector
ADVERTISEMENT
TOP STORIES
a land lease community home in white at a gemlife development, a type of home which could be the answer to the housing crisis
Residential

‘We are the Solution’: Land Lease Shake-Up Stirs into Life

Renee McKeown
5 Min
Korean coliving hero
Exclusive

Disconnection by Design: Why ‘Untech’ is the Next Big Amenity

Clare Burnett
5 Min
Global Shifts Redraw the Map for Australia’s Office Market
Exclusive

Office Eyes Slowdown as New Stock Supply Becomes a Trickle

Vanessa Croll
7 Min
Salta MD Sam Tarascio
Exclusive

Why Salta Won’t Break Ground on $400m Pipeline

Leon Della Bosca
7 Min
Exclusive

Precinct Proposals Bloom as Brisbane Middle-Ring Sheds its Past

Phil Bartsch
8 Min
View All >
a land lease community home in white at a gemlife development, a type of home which could be the answer to the housing crisis
Residential

‘We are the Solution’: Land Lease Shake-Up Stirs into Life

Renee McKeown
Planning

Bipartisan NSW Planning Reform a Welcome Surprise

Patrick Lau
Legal

Court Freezes Assets as $160m Property Scheme Unravels

Vanessa Croll
From Main Beach apartments to Southport towers, projects are frozen while receivers trace investor funds and builder cla…
LATEST
a land lease community home in white at a gemlife development, a type of home which could be the answer to the housing crisis
Residential

‘We are the Solution’: Land Lease Shake-Up Stirs into Life

Renee McKeown
5 Min
Planning

Bipartisan NSW Planning Reform a Welcome Surprise

Patrick Lau
5 Min
Legal

Court Freezes Assets as $160m Property Scheme Unravels

Vanessa Croll
2 Min
Darwin Sentinel Industrial East Arm Deal hero
Industrial

Sentinel Property Expands NT Portfolio with $57.4m Buy

Phil Bartsch
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/owner-occupiers-drive-sales-for-inner-brisbane-apartments