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There has been a spike in apartment sales in Brisbane, with investors prepared to pay $100,000 more for a premium product, new research reveals.
The latest Urbis Apartment Essentials report, released today, reveals 212 apartments were sold in the June quarter, nearly double that of the previous quarter when only 122 sold.
The average sale price was $757,488 — up $113,000.
And supply is continuing to be steadily absorbed, with only 205 apartments approved in the June quarter.
Five new projects comprising 467 apartments were launched in the three months to the end of June.
Urbis director of property economics Paul Riga said the increase in sales was driven by a selection of ‘premium product’ sales, particularly in Brisbane’s CBD and inner east.
One new West End project recorded 69 sales, representing 77 per cent of its total stock.
“The performance of newly launched projects gives confidence to the fact that strong results are achievable when developers invest in the quality of the project and researching their buyer group” Mr Riga said.
Two-bedroom, two-bathroom apartments were once again the most popular product type, accounting for 47 per cent of total sales.
The average sale price of two-bedroom apartments increased by $69,000 in the quarter.
A large number of three bedroom apartments were also sold in the June quarter.
“Our future supply tracking of development applications and approvals shows an increase in the number of potential three-bedroom apartments,” Mr Riga said.
More than 20,000 apartments across inner Brisbane remain in the development approval stage, but most of those are not expected to come to the market in the near future.
Seven developments comprising 1062 apartments are expected to launch before the end of the year.
“With respect to the future of Brisbane apartments we are noticing developers taking time to delve further into demographics, with a particular focus on the end resident,” Mr Riga said.
“This inspires confidence that future developments delivered to the Brisbane market will provide the community with what they need and desire.”
A new report from property group Oliver Hume also points to a further recovery in the Brisbane apartment market.
“The Brisbane apartment market is showing signs of recovery and this comes at a time when a decline in construction activity is expected in the short-term,” the June quarter market insights report said.
“The extent of the decline is unclear however and is dependent on the number of marketed projects that commence construction.
“Some price growth is already occurring, and this is expected to continue.”