Brisbane apartments now $100k more expensive
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Nov 23, 2018
Brisbane apartments now $100k more expensive
The price of a Brisbane apartment is now $100,000 more expensive than it was three months ago, according to a new report by Place Advisory.
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Place BulimbaPictured: 306/140 Alice Street, Brisbane City. Sold by James McKinlay of Place Bulimba, as seen on Luxury List.
If you were in the market for an apartment in Brisbane, the odds are not in your favour. The price of a new apartment is now at least $100,000 more expensive than just three months ago - the highest level since the record highs of the GFC.
A new report from Place Advisory reveals the average sale price of an apartment in the city during the September quarter was $790,489 - up 17 per cent on the previous quarter.
“The price increase is being driven by owner-occupier demand for higher-end apartments," Director of Place Advisory Lachlan Walker said.
Pictured: Lachlan Walker, Director of Place. Image supplied by Place.
Two-bedroom apartments between $750,000 and $900,000 were the most sought-after, totalling 22 per cent of off-the-plan sales.
Sales have also more than doubled in that time, as the appetite for apartment living heats up.
The report found 368 apartments were sold during the three months to September, totalling around $291 million.
Many of these apartment sales were in just one development - ‘The Standard’ by Aria Property Group in South Brisbane, which accounted for a whopping 234 of those sales.
Despite this, Mr Walker says the inner Brisbane apartment market continues to be hit by tight lending conditions placed upon both purchasers and developers.
“However, with future new supply being constrained to low levels, purchaser demand continues to steadily absorb the available stock. Developments of higher quality apartments continue to outperform as owner-occupiers currently dominate the market place," Mr Walker told WILLIAMS MEDIA.
The report found that new apartment supply is steadily decreasing by 10 per cent compared with the previous quarter. If sales volumes remain at these levels, the current available supply will be absorbed by the end of 2019.
Independent consultancy Urbis recently put out its own Brisbane apartment market report, which found interstate investors were driving the recovery of the market, while owner-occupier activity had dropped off.
Tightening vacancy rates, stable prices, and relatively strong yields had been key attractions for interstate investors, but securing sales has been a sticking point for agents.
"Brisbane experienced a modest boost in sales during the quarter, however, the process of securing these sales was a longwinded battle for marketing agents, who advertised months in advance prior to launch," Urbis Director Paul Rigas said.
Related reading:
Off-the-plan apartment price hike in Brisbane
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