The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FIRST RELEASE TICKETS ON SALE FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FIRST TICKETS ON SALE FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
SEE DETAILSDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Partner Lab
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
55
print
Print
ResidentialThu 01 Nov 18

‘The Worst Has Passed’ in Brisbane’s Apartment Market: JLL

63691a61-a295-40f0-9fb9-db7ebd0dcd1d

Against a backdrop of stalling property markets in Sydney and Melbourne, Brisbane’s apartment market is set to stabilise as positive economic conditions and population growth pick up supply.

Brisbane’s apartment market is the most advanced Australian capital in the cycle, with supply levels peaking in 2016.

About 6,000 apartments across 34 projects are under construction in inner Brisbane, with 20 projects currently in the marketing phase, according to data revealed in JLL’s Apartment Market report for the third quarter.

An unfavourable lending environment and negative sentiment means commencements are expected to remain subdued over the short to medium term. Nonetheless, JLL is largely upbeat about Brisbane’s apartment market.

“In terms of pricing in Brisbane, existing apartment prices have fallen by just over five per cent since their mid-2016 peak, but have now shown strong signs of stabilising,” JLL head of residential research Leigh Warner said.

“For new stock, resales data shows that over half of resales occurring are below the initial pre-sale contract price, but this too is stabilising.

“Further, there are still many examples of quality projects in the market than are achieving positive resales growth.”

Related: Population Boom Won’t Lift House Prices: Opinion

The worst ‘likely to have passed’

As new and residual supply is absorbed, market conditions are expected to remain challenging although the “the worst is likely to have passed”.

Brisbane’s experience should provide a window view into what Sydney and Melbourne can expect over the next 12 to 18 months, Warner says.

“Supply in Brisbane peaked in 2016 and fear of a hard landing and significant repricing was very high through that period and 2017.

“Conditions have undoubtedly been tough in Brisbane, but nowhere near as bad as many expected.”

“Rental vacancy rose, and rents have come under some moderate downward pressure, but vacancy is now falling and rents are stabilising.”

Related: R&F Property Launch $500m West End Apartment Project

The first stage of Sekisui House’s West Village was delivered in the September quarter, transacting 329 units (24%) of the project.


Developers shift focus

Developers are catering to owner-occupier driven projects and are embracing medium-density as they move away from larger scale development.

Approvals for inner city apartments fell sharply over the year, declining by nearly 24 per cent.

Construction activity increased with seven projects commencing in the quarter including R&F’s 200-apartment “Domain” project in Kangaroo Point and a 61-apartment project on West End’s Victoria Street.

West End was particularly active for development over the quarter, with several large scale development sites transacting.

Sydney’s Crown Group secured the site for its controversial 400 apartment West End project, paying $35 million for the Victoria Street parcel.

In August, developer Sekisui House lodged its second stage development application for two residential towers in West Village, adding nearly 200 more apartments to the West End block.

ResidentialAustraliaBrisbaneReal EstateSector
ADVERTISEMENT
TOP STORIES
Bankstown cbd in Sydney NSW EDM
Exclusive

Breaking Delivery Crisis Chokehold on NSW’s Biggest Housing Market

Vanessa Croll
7 Min
Healthscope Hospital EDM
Exclusive

‘Once-in-a-Decade’ Opportunities Rise in Wake of Healthscope Collapse

Clare Burnett
7 Min
Exclusive

Parking Upsize Threatens Fatal Blow to Project Feasibility

Phil Bartsch
6 Min
One New Zealand Stadium BESIX Watpac
Exclusive

Rising to a Challenge: How BESIX Watpac Topped Australia’s Builders

Clare Burnett
7 Min
Exclusive

Rewards Outstrip Risk in SE Queensland Off-The-Plan Buys

Taryn Paris
7 Min
View All >
Aerial photo of St Mary's Intermodal Terminal in Western Sydney now sold by Pacific National to PGIM and Cadence.
Industrial

Cadence, PGIM Team Up for $145m Freight Rail Acquisition

Marisa Wikramanayake
Bankstown cbd in Sydney NSW EDM
Exclusive

Breaking Delivery Crisis Chokehold on NSW’s Biggest Housing Market

Vanessa Croll
Development

Melbourne Luna Park Revival Wins State Backing

Marisa Wikramanayake
The Victorian government has provided funding in the state budget to restore Luna Park’s unsafe, century-old Palace Buil…
LATEST
Aerial photo of St Mary's Intermodal Terminal in Western Sydney now sold by Pacific National to PGIM and Cadence.
Industrial

Cadence, PGIM Team Up for $145m Freight Rail Acquisition

Marisa Wikramanayake
2 Min
Bankstown cbd in Sydney NSW EDM
Exclusive

Breaking Delivery Crisis Chokehold on NSW’s Biggest Housing Market

Vanessa Croll
7 Min
Development

Melbourne Luna Park Revival Wins State Backing

Marisa Wikramanayake
2 Min
Sydney Fish Market Blackwattle EDM
Planning

Sydney Fish Market Rezoning Clears Way for 320 Homes

Clare Burnett
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/the-worst-has-passed-in-brisbanes-apartment-market-jll