The December 2015 Quarter tops off what has been a historical year for the Inner Brisbane off the plan apartment market in Brisbane. A total of 1,293 unconditional transactions were recorded across the Brisbane marketplace through the final quarter of 2015, bringing the total sales for the annual year to 5,336 transactions.

A weighted average of $613,631 was documented across the 1,293 transactions, with the majority of sales occurring in 2 bed apartments across the Inner Brisbane market.

For the December 2015 quarter, a weighted average of $613,631 was established across the Inner Brisbane market for the 1,293 unconditional sales reported during the 3 month period (down 7% from September).

Two bedroom sales represented 63% of the quarter’s transactions, the overwhelming majority of which transacted between $550,000 and $750,000.

The level of one bedroom transactions declined further in the December Quarter 2015, representing only 32% of the total sales in the past three months. The one bed versus two bed recorded sales volumes has been the largest recognisable shift the past 12 months – the same period in 2014 saw one bedroom sales total 50% of the quarters transactions versus 49% two bedroom transactions – which was also representative of the surrounding quarters. This trend suggests that demand has shifted away from the cheaper one bedroom stock in favour of larger apartments.

Total gross sales in dollar terms, for off the plan sales in the December quarter, totalled almost $794 million. The best performing projects in Brisbane during the quarter included Oxley & Stirling by Aria with 215 unconditional sales, followed by Capri at Newstead Central and Utopia Space with 98 sales a piece and Stage Two of South City Square with 97 unconditional sales.

2,208 new residential apartments remain for sale across the Inner Brisbane market. This translates into a supply of 5.1 months. There were 11 new projects released during the December 2015 quarter, spanning 1,893 apartments.

At the close of December 2015 two bedroom supply accounts for 45% of the apartments remaining on the market. A further 41% of the supply was one bedroom apartments and three bedroom apartments accounted for 14% of the available apartments for sale.

Overall, 2015 saw significant volumes of unconditional sales throughout the year. In review, 2015 produced the highest total volume of transactions over any 12 month period historically and saw some significant shifts in market demands. Consistent sale prices were achieved, the rental market softened as major apartment buildings began to settle and the investment market continued to drive sales despite owner occupiers beginning to re-enter the local apartment market.

5,336 new unconditional sales were recorded during 2015. This is a 30% growth on the 2014 sales reported and almost 4 times the unconditional sales recorded in 2010 five years earlier. The weighted average sale price across the total unconditional sales was $595,253; a 4% growth from the weighted average price in 2014.

Approximately $3.19 billion worth of residential new and off the plan sales were recorded during 2015. There were 4,394 new apartments released to the market during 2015 over 26 different medium to high density projects – an average of 169 apartments per building.

The majority of stock sold through the year were 2 bed apartments – totalling 56% of all transactions.

Place Advisory look forward to reporting on the sales volumes and transactional trends to be recognised in 2016. There is an expectation that 2016 will be a tougher 12 months than 2015. Construction prices are set to have the biggest impact on Brisbane residential development, either forcing prices to rise and reducing sales rates or squeezing end profits for the developer. With council elections on March, and a looming Federal election, the SEQ property market will definitely see some peaks and troughs