New or Old : Which Brisbane apartments performed best.

It’s an age old argument: – which is a better buy – a new or an established apartment?

Well, a recent report may just provide some answers… brisbane city urban apartment tower live skyscraper melbourne off the plan cbd market

Place Advisory’s annual report on Inner Brisbane’s apartment resales provides insight into how each market has performed over the past ten years.

By separating each apartment sale into one of two categories

  • new or
  • old,

Place Advisory determined how they performed and which is the better investment.

An apartment resale was defined as a sale that occurs after the initial sale of an apartment within a development.

Place Advisory summarised their findings:

  • As shown in the graph below, the most recent six month period ending June 2016 saw resold apartments record a median sale price of $445,000, whereas new apartments recorded a median sale price of $535,000. 
  • Over the past ten years ending June 2016, apartments that have been resold in Inner Brisbane have been, on average, 17% more affordable than new apartments.
  • Price growth for resold apartments has outpaced that of new apartments, with resold apartments experiencing 4.0% price growth per annum over the past ten years, whereas new apartments have experienced 3.1% price growth per annum.
  • Over the past five years, with the exception of the most recent 12 month period, the ratio of old to new apartment sales in Inner Brisbane have been relatively similar. This is due to the record levels of off the plan apartment stock available.
  • The most recent 12 month period ending June 2016 has seen new apartment sales decrease considerably as a result of numerous influential issues across the wider economic market.

Brisbane new vs old apartments

Source: Place Advisory

Over the past ten years, average capital growth in the Inner Brisbane property market was 5.6% per annum. brisbane

But this market has softened since the GFC, with capital growth peaking at 10.5% during the six month period ending June 2008.

Capital growth has since experienced several consecutive periods of decline, reaching a low point during the June 2016 six month period at 2.6%.

Read more at: Place Advisory’s Inner Brisbane’s Apartment Resales



Want more of this type of information?


Brett Warren

About

Brett Warren is the Senior Property Strategist at Metropole Properties Brisbane and uses his 12 plus years property investment experience to advice clients how to build their portfolios. Visit: www.brisbanebuyersagent.com.au


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