Living in the CBD is something which, though popular internationally, Brisbane buyers are yet to fully embrace.
“Living in the CBD is something which, though popular internationally, Brisbane buyers are yet to fully embrace. However, as the CBD develops and becomes more than just a work hub, especially with developments such as Queen’s Wharf being built, we can expect to see more people wanting to live centrally.”
The traditional two-bedroom two-bathroom apartment market made up the majority of sales this quarter, with 51% of total sales, up from 35% in the previous quarter. The popularity of three-bedroom plus product continued to decline, with less of this product type available to the market.
“Two quarters ago three-bedroom plus product made up 15% of total sales, then it dropped to 13% and now it is sitting at 10%,” Mr Riga said. “As projects sell out and fewer projects launch, less three-bedroom plus product remains available to purchase. Smaller developments with bigger apartments, especially in locations with a high house median sale price, continue to be popular with owner-occupiers. The Inner East, which includes suburbs Kangaroo Point, Coorparoo and Bulimba, is an example of this.”
Owner Occupier transactions made up 31% of sales this quarter, most of these located in the Inner East and Inner South precincts. However, despite recent changes to foreign investor lending, foreign investor buyers dominated the market with 46% of transactions. Key investment projects in South Brisbane made up the majority of foreign investor purchases.
“It was interesting to see a downturn in the local investor market and the foreign investor market dominate,” Mr Riga said. “I see it as a positive that despite the recent bad press, the international market is still confident in Brisbane and believe in the city’s future potential.”
Apartment approvals increased slightly, though remained in line with current market conditions.
“Development approvals did increase from the previous quarter, however it is important to note that the first quarter of the year is always slow from an approvals perspective,” Mr Riga said. “Next quarter we expect to see a similar number of developments launch to the market, keeping new supply trickling in at a steady pace.”
“I’m confident in the Inner Brisbane new apartment market,” Mr Riga said. “No, I don’t expect to see the level of sales we saw a couple of years ago, however I do believe that at current supply levels, and with the range of product, buyers and developments on offer, the market will remain steady.”