Brisbane’s new apartment sales are going strong with demand growing.
A new report from Place Advisory found there were 1,225 new residential apartments still for sale
at the end of March 2014, which would supply the market for less than six months.
Lachlan Walker, Director of Place Advisory Director said the sales rate was well above historical averages and that demand is showing no sign of slowing down.
“With new apartment sales remaining strong and supply having fallen to an historical low, it’s evident there is a continued undersupply of new off-the-plan stock in inner Brisbane,” he said.
“While some commentators have implied that the Brisbane market is likely to be oversupplied in the near term due to the proposed pipeline of apartments, in our opinion the majority of these projects will never actually make it to the open market, hence the undersupply will endure in the near term.
“There is indeed a substantial pipeline of proposed apartments, today numbering 22,000, but this has existed now for more than six years and is to be expected of a city whose population is set to double in the coming years.
“In reality, the lending hurdles and the banks’ tight purse strings will ensure only feasible residential projects enter sales and marketing and evolve into the construction phase.”
There are many reasons these properties become popular, including affordability, smaller households (demographically) and lifestyle options.
Owner-occupiers returning to market
Investors have been active in Brisbane’s new apartment market but owner-occupiers appear to be returning.
“The re-emergence of owner-occupiers is a positive sign for Brisbane’s market – it’s evidence of the continuing improvement in sentiment, as well as the improvement in market conditions, which is creating an urgency amongst buyers,” said Mr Walker.
Two-bedroom apartments accounted for more than half of the total transactions over the March quarter, while one-bedroom sales represented 40%.
The most popular price range was $350,000 to $450,000.
According to the report, the best performing projects in Brisbane during the quarter were Abian (108 sales), Broadway on Anne (58 sales), Southpoint (46 sales), Proximity (45 sales) and 38 High Street (44 sales).
“Going forward the inner south will be the area to watch – there is high demand from buyers in the inner south and it has a high potential for change,” said Mr Walker.
Scooting away with deals
One Toowong development is giving away free scooters (and registration, and a helmet) to buyers of their one-bedroom apartments to underscore the lifestyle advantages of living in a transport and amenities hub.
“Residents of this development won’t need a car,” said marketer Bruce Goddard from Place Projects.
“It epitomises the concept of inner city living which council is advocating, and more and more people are gravitating towards.
“There are a multitude of public transport options, with a bus stop just 10 metres away, the Toowong train station 50-metres away and the CityCat located 500 metres away, and being an inner city suburb, situated only a few kilometres from the CBD, it’s very easy to get around.
“People don’t have to travel far to access other parts of Brisbane, especially when there are plenty of work, study and play options in very close proximity.”
The 38 High Street development has been snapped up, reflecting the demand for convenient, low maintenance properties.
Original article published at www.realestate.com.au/blog by Vanessa Paech September 2014