BRISBANE APARTMENT PRICES RISE

Written on the 19 June 2015

BRISBANE APARTMENT PRICES RISE

THE record-low interest rate is driving demand for apartments in Brisbane, according to research by Place Advisory.

The project marketing company's quarterly report shows an upswing in the weighted average sale price for Brisbane apartments reaching $606,469 in the past three months a 10 per cent lift compared to the previous quarter.

Despite sales volumes failing to meet the "record heights" in the December quarter, a string of apartment sales show an increase of 92 per cent when compared to the same quarter in 2014.

Place Advisory director Lachlan Walker (pictured) says the back-to-back results reflect a sustained, consistent confidence in Brisbane's apartment market.

"With total gross dollar sales for the March 2014 quarter reaching $742.9 million and this quarter's results sitting 200 per cent above the 10 year average, we can confirm that the Brisbane market is in a strong positon and we're now seeing the results of the high levels of demand we've observed in recent years," Walker says.

"These results were built on the strength of the previous record-breaking December quarter and show the Brisbane market continues to capitalise on affordability and high yields.

"This coupled with the historically low interest rate environment means confidence and sales have remained exceptional."

Total gross sales represented $742.9 million across a total of 1225 unconditional sales in the three months to March.

Sales across inner Brisbane remain supply-driven and are marked by one and two-bedroom apartment transactions representing 94 per cent of overall sales driven by price pointed investment purchasers.

Brisbane's top three performing projects across the quarter included Skytower with 170 transactions, followed by Southpoint Stage C with 130 transactions and Unison notching 124.

Walker remains optimistic about the future market and dismisses talk of oversupply in the Brisbane apartment landscape.

"Various statistics have implied that the Brisbane market will see an oversupply in the short-term, however we challenge these notions and we remain confident that Brisbane will remain undersupplied in the near-term," he says.

"Apartment demand is at an all-time high and while this is unsustainable we predict the cycle will enter a new era of higher quality, larger product in the more developed inner-city regions while traditional fringe suburbs will see for the first time, higher density development along the core transit corridors."

A number of project launches planned in the next six months is expected to sustain the supply.

According to the report, there were 2455 apartments available for sale across inner Brisbane at the end of March equating to a 6.6 month supply.

Latest News

CROMWELL CALLS FOR FULL DISCLOSURE FROM INVESTA

CROMWELL Property Group (ASX:CRM) has claimed Investa Office Fund (ASX:IOF) has not disclosed material information ab...

FRAUD CAUSES SILVER CHEF PROFIT SLIDE

EQUIPMENT financier Silver Chef (ASX:SIV) has seen its half-year profit slide due to fraud.

The Brisbane company r...

MEGAPORT QUADRUPLES REVENUE AND INVESTS IN EXPANSION

MEGAPORT (ASX: MP1) increased revenue 345 per cent to $4.46 million in the six months to 31 December 2016, the com...

IN-STORE VETS BOOST GREENCROSS' PROFIT

GREENCROSS Limited (ASX: GXL) shares lifted 5 per cent in trading today after the Brisbane-based company posted a ...

Related News

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

TEST DRIVE A POST GRAD AT BOND

THERE'S only one way to really move your career into the fast lane, says Bond University, and 'test driving...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter