Brisbane’s new apartment sales see strongest result in two years

The weighted average sale price recorded for the September quarter was $733,000, with three quarters of sales made in projects positioned toward the middle to high end of the market. The Inner East registered as the most affordable precinct with a weighted average sale price of $519,000 while Brisbane CBD again registered the highest weighted average, just topping $1.1 million.

“The scale, location and targeting of the projects launched has led to an increase in the proportion of investor purchasers over the quarter.” Mr Riga said.

Interstate investors spiked to 54% while owner occupiers dropped to 15%, with local investors making up a further 14%.

“The increasing number and proportion of investor purchasers across a variety of projects is an indication that longer-term confidence still exists for the inner Brisbane apartment market. Recent investments, stable prices, tightening vacancy rates and relatively strong yields are core drivers for these investors.” Mr Riga said.

The owner-occupier market cannot be forgotten however, as despite the lower proportion, the number of owner-occupier sales increased over the quarter.

“The continued growth in the owner-occupier market highlights a maturing inner Brisbane apartment market, with purchasers increasingly seeking the benefits of the apartment lifestyle.”

Whilst we have seen a strong sales result for the quarter, it is unlikely that we will see a significant change to potential supply. Approvals took a dive in the quarter with a total of 403 apartments approved across Inner Brisbane, down from 1,674 the previous quarter. Immediate new supply is even more scarce, with four projects expected to launch in the next 6 months, bringing circa 950 new apartments to market.

“We are not expecting continued quarters of sales at this level due to limited levels of new supply, however overall this quarter has highlighted that there is still demand in the inner Brisbane apartment market and the right drivers are present. Green shoots are certainly there for all to see.” Mr Riga concluded.  

• Number sales recorded in the quarter: 420
• Weighted average sale price recorded: $736,065
• 403 apartments approved in the quarter