Brisbane apartment market cautiously optimistic

Brisbane’s weighted average sale price increased by $113,000, registering at $757,488. The increase was driven by a selection of premium product sales, particularly in the CBD and Inner East precincts. Nine of the surveyed projects achieved an average sale price greater than the Inner Brisbane average in the quarter, however the majority of sales achieved were in an affordable mid $600,000s bracket.  

Transactions were certainly bolstered by the addition of fresh supply – with five new projects launching in the quarter – the most since Q3 2018. One new West End project in particular recorded 69 sales, representing 77 per cent of its total stock. “The performance of newly launched projects gives confidence to the fact that strong results are achievable when developers invest in the quality of the project and researching their buyer group” Mr Riga said. 

Two-bedroom, two-bathroom apartments were once again the most popular product type accounting for 47 per cent of total sales. The weighted average sale price of two-bedroom apartments increased by $69,000 in the quarter, contributing to the overall price increase. However, this quarter also saw a large number of three bedroom apartments selling (21 per cent of total sales), inline with the high number of premium apartment sales in the quarter.

“Our future supply tracking of development applications and approvals shows an increase in the number of potential three-bedroom apartments,” Mr Riga said. In addition, some precincts are more focused towards premium projects however, with pockets of Brisbane seeing smaller, boutique projects making up a higher percentage of overall product. “This diversity is clearly seen in our future supply, for example in the Inner East 18 per cent of approvals are for three-bedroom apartments, compared to 5 per cent in the Inner North.”    

The Apartment Essentials has monitored the Inner Brisbane new apartment market since 2012, apartments are now a very normal part of the Inner Brisbane landscape. However, this quarter saw a milestone for Brisbane with the very first Build to Rent development application lodged with Council. “Build to Rent has been a hot topic, with over $1 billion worth of projects currently planned across Australia, it is exciting to see the real beginnings of the Build to Rent industry in Brisbane,” Mr Riga said.  

Apartment approval figures remained low, with only 205 apartments approved in the quarter. Over 20,000 apartments across Inner Brisbane remain in the Development Approval stage, however the majority of those sites are not expected to come to the market in the near future. “The opportunity to re-purpose these sites exists, and yes ‘Build to Rent’ is one such opportunity,” Mr Riga said. 

Seven developments totalling 1,062 apartments are expected to launch before the end of the year. “With respect to the future of Brisbane apartments we are noticing developers taking time to delve further into demographics, with a particular focus on the end resident. This inspires confidence that future developments delivered to the Brisbane market will provide the community with what they need and desire.”      

Urbis Brisbane Apartment Essentials Q2 2019 snapshot: 

• Weighted average sale price of $757,488 recorded, up $113,000 from the previous quarter 

• 5 projects launched in the quarter equating to 467 new apartments 
• 205 apartments were approved in the quarter 

Contact our expert team to find out more.