New Apartment Sales Expected to Rise in Brisbane

There are many options for real estate in Brisbane for investors, however new research has predicted that off the plan apartments will be a strong housing choice over the next few years.

BIS Shrapnel's 'Inner Brisbane Apartments 2013 to 2010' report identified that off the plan apartments in the Queensland capital will strengthen in 2014-2015 , which will be fuelled by low vacancy rates and accommodative interest rates for home loans.

Furthermore, the attractive rental yields on offer in Brisbane coupled with a strengthening real estate market in the region will also add to the growth in off the plan sales.

A growing residential real estate market

There's no doubt that 2013 saw some strong growth rates in certain capital cities across the country.

Although real estate in Sydney seemed to be the strongest performer, Brisbane reported positive results too.

RP Data found that median house values increased by 5.3 per cent over 2013, while units grew by 3.5 per cent. Interestingly, the rental market posted some encouraging yields over the year. Houses recorded 4.6 per cent, while gross rental yields for units was a strong 5.5 per cent.

BIS Shrapnel Senior Project Manager Angie Zigomanis commented on the strong rental market in Queensland and noted the performance of apartments in Brisbane.

"Initial yields in many new apartment projects in Brisbane have been above 5 per cent for some time now," he said in a January 30 release.

This could be an extremely encouraging sign for investors looking to secure a lucrative investment in Brisbane due to strong rental yields and potential price growth.

Mr Zigomanis noted the growing demand for off the plan apartments will likely underpin price growth for inner Brisbane units. As a result of this activity, more investors are expected to be attracted into the Brisbane market.

"In particular, buyers from New South Wales are likely to find the value proposition for apartments in Brisbane more attractive compared to prices of apartments in inner Sydney after the recent rises that have occurred there," said Mr Zigomanis.

Queensland's strengthening economy

On top of this rise in off the plan apartment sales, the Queensland economy is also expected to growth in strength over time.

The Deloitte Access Economics Business Outlook: December 2013 report identified the state as the fastest growing economy in 2014-15, which might make Queensland a more attractive place for investors, residents and businesses.