State of the Brisbane new apartment market
QUEENSLAND’S economy is bouncing back with increased infrastructure spending supporting its growth and soaking up apartment supply.
Ray White Group director Dan White (pictured below) said the inner city apartment market in Brisbane has attracted so much commentary – all very negative – for some time.
“It’s been all driven predominantly by fears of a significant over-supply of new product,” Mr White said.
“But what is often not mentioned is that new supply peaked six to nine months ago.
“And completions for the remainder of this year are broadly in line with long term averages.
“Much of the stock that was planned never came to fruition and many developers put their projects on hold. And as supply hasn’t been as great as predicted, by all accounts – demand and inquiry is back up.
“Our team reports that there’s been a lot of good inquiry in the first quarter of 2018. With things moving faster than it has in a long time. And importantly the rental market is really strong with low vacancies producing reasonable yields.”
“While we have seen increased restrictions on investor lending, it’s been fantastic to see that the share of first home buyers in the market is very close to returning to its long term average of about 20 per cent, all adding strength to the market,” he said.
“The big demographic shift of people wanting to live closer to the centre of our cities is further evidenced by our latest data shows that shows that apartment prices are actually outpricing houses nationally. “
Ferro Property Group’s $27 million London Residences is directly aimed at owner-occupiers looking for spacious and urbane inner-city living – and the Brisbane market is responding wholeheartedly.
The stunning boutique development features only 26 oversized three- and four-bedroom residences on West End’s burgeoning Bailey Street.
More than half of these have already sold – all to owner-occupiers.
Ray White New Farm Principal Haesley Cush said London Residences was the ideal luxury development for downsizers.
“I regularly struggle to recommend appropriate apartment options to buyers wanting to move on from their large suburban houses,” he said.
One new buyer Robert Alexander – a well-known man in the Brisbane arts community – has amalgamated two apartments to create a prestigious 246sq m apartment at the London Residences with four bedrooms and two dressing rooms.
Mr Alexander’s inspiration to create a bespoke residence came from his uncle who did a similar thing on the Toowoomba Range.
He wanted to create a spectacular Brisbane residence while in the city to compliment his agricultural holding in Dalby.
Ray White Spring Hill real estate agent Elisa McMahon and Robert Alexander along with developer, Ferro Property Group worked together on the creation for four months before coming up with the ideal solution for him.