Brisbane apartment interest continues post-election
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Jun 7, 2019
Brisbane apartment interest continues post-election
CBRE has reported a continuation of the spike in interest for Brisbane residential apartment blocks that began in the months prior to the election.
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DepositphotosThere has been strong interest in Brisbane apartment blocks in the weeks following the election.
Many aspects of the property industry may be still adjusting to a post-election market, but it seems Brisbane's residential apartment sector is not among them.
Two weeks before the election, CBRE revealed it received a spike in interest for east coast assets, which Associate Director Gemma Isgro attributed to potential changes to negative gearing and capital gains.
A month later, the firm says the trend is continuing in Brisbane's tightly held residential apartment sector.
Jon Quayle from CBRE's Metropolitan Investment Division told WILLIAMS MEDIA that the post-election activity had been highlighted by the local and offshore buyer interest in a block of six units at 128 Racecourse Road, Ascot, which was being offered with price expectations of circa $3.7 million through CBRE in conjunction with local agent Jim Waller.
"We thought that sector of the market would taper off following the election, but it has continued to grow," he said.
Related Reading: Increased interest in Sydney apartment blocks ahead of potential changes to negative gearing - CBRE
"We're seeing a demand for traditional bricks and mortar residential blocks, the outgoings of which are relatively low.
"The cost of capital with interest rates still down is also a factor."
Mr Quayle said the next test of the market would involve a 100+ unit building held on one title, which was set to come to market in the coming months with a $45 million price tag.
“Many of the unit blocks we sell have a long history of family ownership,” Mr Quayle said.
“Much like multifamily assets in the US, they are often held for decades and passed on to future generations.
He added that while he expected the interest in Brisbane's residential apartment sector to remain strong throughout the rest of the year, he was unsure if there would be the supply to match it.
"There's not a lot of these unit blocks that are held by a single owner in Brisbane," he said.
"The transactions probably won't be booming for the sheer fact that there is not a whole lot of these around."
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