The Brisbane investor market has matured to the point that buyers are better informed about what they want, and greater supply of new apartments means they can hold out to purchase something special for a reasonable price.

Paul Riga, associate director of property consultants Urbis, said recent developments have been targeted at investors, and as more supply comes online, investors are having greater choice about the apartments they buy.

Urbis's Brisbane Apartment Essentials report shows that both demand and supply fell during the June quarter.

The report showed 810 new apartments were sold in the June quarter - the third consecutive quarter of decline, and the lowest volume since early 2014.

“We are seeing the market... returning to a more sustainable level of activity, and giving the market time to absorb the current stock available,” said Riga.

Riga said sales volumes are likely to remain around the 800 mark for the next two to three quarters.

By contrast, Riga said approximately 25 new projects are expected to launch between July and December 2016, bringing a potential 2,850 new apartments to the market. “This is around half the level of supply brought to market at the same time last year,” he said.

The Brisbane Apartment Essentials report also found sale prices have been steadily decreasing since the end of last year, particularly for two-bedroom apartments.  The weighted average sales price for the June quarter was $578,580, a decrease of $17,084 since the March quarter, and continues a downward trend since the December 2015 quarter.

“The decline in the median sales price has been largely driven by product availability," said Riga.

“In addition (to lower volumes and prices), we now have a savvier, more discerning level of investor operating in the market,” said Riga.

“We are now moving firmly into the delivery phase of Inner Brisbane’s first major apartment boom, so the focus is increasingly turning towards the rental potential of these apartments,” Riga said.

“It will be a competitive market and we are progressively going to see a ‘flight to quality’ – with tenants looking for projects that offer value, connectivity, lifestyle amenity and a point of difference.”

Luxury developer, Kokoda Property, is a good example. The developer has defied market expectations, selling 135 apartments worth a total $94.9 million at its Chester development in Newstead in the last seven weeks.

Kokoda Property’s sales and marketing director, Sam Tucker, said buyers lost confidence during the extended federal election period, but now investors are returning to the market.

“The process was incredibly drawn-out and buyers lost confidence. Now the dust is settling, and we are seeing a return to high levels of demand," said Tucker.

The Urbis report also showed that low and mid-rise projects accounted for 45 per cent of total sales in the June 2016 quarter, compared with only 17 per cent of sales in the March quarter 2016.

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