Brisbane’s apartment market looks set for growth by industry experts who tip a sustained period of steady price growth.
While Sydney and Melbourne have both seen incredible growth over the past five years, Brisbane’s apartment market has remained relatively sedate with little to no growth. This has once again caused a new affordability gap between Australia’s three largest cities.
Despite being Australia’s third largest city, Brisbane is now one of the cheapest to buy property.
According to RPData, Brisbane’s median house price currently at $455,000. It is now more expensive to buy in Sydney ($690,000), Melbourne ($560,000), Perth ($515,200), Darwin ($535,000) and even Canberra ($525,000).
The last time there was an affordability gap this large, interstate migration also began to increase dramatically.
CBRE Residential Projects managing director Paul Barratt said the market at the moment is healthy and sales are strong.
“At both launches, more than half of the product was sold on the day, and since then we have sold up to 85% in one project which has only been on the market four months”
“We are seeing a lot of investors from Sydney come up to Brisbane and purchase affordable and high yielding investments”
“Demand for new apartments in the 4101 – South Brisbane and West End corridor remains high”
“Rents remain strong around South Brisbane as the entire precinct is transforming into a major dining and entertainment destination, while also now seen as an extension of the Brisbane CBD”.
Mr Barratt said he believes apartment values will steadily increase over the next two years, pointing out that Brisbane is now up to 40% more affordable than most new inner city Sydney apartments which now cost up to $800,000 for a one bedroom apartment with no car.
According to RP Data June Index results, Brisbane’s apartment market recorded a 1.7% increase this year with median apartment price over this quarter hovering at $385,000.
Apartment stock levels are also trending lower than this time last year however there has been an increase in development applications received by the Brisbane City Council.