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…
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
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.
Source: Place Advisory
Over the past ten years, average capital growth in the Inner Brisbane property market was 5.6% per annum.
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
Subscribe & don’t miss a single episode of Michael Yardney’s podcast
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
Need help listening to Michael Yardney’s podcast from your phone or tablet?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
Prefer to subscribe via email?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.