STA­BIL­ITY RE­TURNS TO MAR­KET

The Courier-Mail - Home - - NEWS - EMILY BLACK

Any­one wait­ing for the best time to in­vest in an in­ner-Bris­bane apart­ment should con­sider act­ing now, as re­search pre­dicts a mar­ket tight­en­ing and all new sup­ply to be ab­sorbed by mid-2021.

That’s the ad­vice of Place Ad­vi­sory di­rec­tor Lach­lan Walker, who said the group’s lat­est Quar­terly Apart­ment Re­port re­vealed a re­turn to mar­ket sta­bil­ity with re­cent sales soak­ing up cur­rent sup­ply.

Mr Walker said with no ma­jor new re­leases ex­pected in the next six months, sup­ply would tighten and there would be growth in the Bris­bane apart­ment mar­ket’s next cy­cle.

“Sup­ply is def­i­nitely tight­en­ing up sug­gest­ing the mar­ket is po­si­tion­ing it­self for growth as Bris­bane moves into its next cy­cle,” Mr Walker said.

He said Bris­bane prop­erty prices were more af­ford­able now than they were in 2008. “Bris­bane’s po­ten­tial for cap­i­tal growth in the medium term is look­ing ever more pos­i­tive as pop­u­la­tion growth and the econ­omy re­turn to in­creas­ingly pos­i­tive trends and new apart­ment sup­ply di­min­ishes.”

Mr Walker said this quar­ter’s weighted av­er­age price of $674,714 was up 1.7 per cent com­pared with the pre­vi­ous quar­ter – a “mod­est in­crease”, but a promis­ing re­sult.

Along with an in­crease in the weighted av­er­age price, there were 175 un­con­di­tional sales in in­ner Bris­bane dur­ing the June quar­ter.

He said while 54 in­ner Bris­bane projects were still sell­ing off the plan, sev­eral had pushed back their ex­pected com­ple­tion dates.

“Of the 1936 new apart­ments cur­rently avail­able for sale, 30 per cent are ex­pected to com­plete con­struc­tion in the sec­ond half of 2018, 31 per cent in 2019 and the bal­ance in 202. This means re­main­ing sup­ply will set­tle in a more stag­gered na­ture, soft­en­ing any po­ten­tial neg­a­tive im­pacts to the mar­ket.” NORTH OF THE RIVER Ac­cord­ing to the re­port, in the precinct north of the river there were 109 un­con­di­tional trans­ac­tions, with a weighted av­er­age price of $558,486. Brook­field Res­i­den­tial Prop­er­ties’

Gallery House Stage 2 was a stand­out per­former, record­ing the most un­con­di­tional sales (23) of any in­ner Bris­bane project, with a weighted av­er­age sale price of $710,870. CBD With 12 un­con­di­tional trans­ac­tions and a weighted av­er­age price of $1,645,833, sales vol­umes re­main mod­est in the CBD precinct. Ex­cep­tional results were recorded at Cbus Prop­erty’s 443 Queen dur­ing the June quar­ter 2018, with the nine apart­ments sold off the plan and the high­est weighted av­er­age sale price for the in­ner Bris­bane mar­ket of $1,838,889. SOUTH OF THE RIVER Record­ing 54 un­con­di­tional trans­ac­tions and a weighted price of $693,519, the re­port said the precinct was fast ap­proach­ing the end of its new apart­ment sup­ply with half of the new build­ings now fin­ished.

Spyre Group’s Soko Wa­ter­front Apart­ments sold the most apart­ments in the precinct for the June quar­ter 2018 with nine un­con­di­tional sales, how­ever the high­est weighted av­er­age price for the precinct was recorded at Stock­well’s Vir­tu­osa with $1,590,000

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