Today we look at 3 trends for Brisbane apartments:
- Brisbane’s apartment sales
- Last year’s apartment buyer profile/origins
- The current state of new apartment supply
1. Sale volumes
|Calendar years||Settled sales||Yet to settle||Total sales|
|Product type||Total sold (2017)||% sales|
Sales volumes are falling.
The median value of a new apartment in Brisbane was $585,000 in 2017, which is down 5.0% on the year before.
There were 8,565 apartment sales in Brisbane last year, of which most were either one, two or three bedroom product.
2. Buyer profile/origins
|Buyer profile/origins||Resales (2017)||New sales (2017)|
|New South Wales||10%||35%|
New apartment product mostly sells to investors.
Local buyers dominate apartment resales but the majority of new apartment buyers live interstate and increasingly, overseas.
3. Status of new apartment projects
|Project status||No. of projects||No. of apartments|
|Recently built (last 2 years)||65||11,500|
|Under construction (most completed in 2018)||43||10,000|
|Development approval & possible over next 2 to 3 years, but unlikely||49||10,350|
|Development application, concept phase, deferred, site for sale or abandoned, most very unlikely over next 3 to 5 years||96||27,650|
There are 253 recently completed or ‘active’ new major apartment projects in Brisbane.
This equates to some 59,500 apartments.
Some scary stuff especially given the underlying need to build about 3,000 new apartments per year (revisit yesterday’s missive).
But most of this new apartment stock is likely to be delayed or may not proceed at all.
Already we are seeing apartment sites being converted to office and other land uses.
Yet there is still pain to come, with 10,000 apartments, under construction, and most likely to be completed during 2018.
This equates to three to four years supply.
In simple terms, the cranes on Brisbane’s apartment skyline will be helping build other things, or moving somewhere else, once these 10,000 apartments currently under construction are squared away.
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