New apartments remain popular in Sydney, Canberra, Brisbane and the Gold Coast, with available stock levels often failing to keep up with rampant demand, a new report shows.
In the latest series of Colliers International Apartments Research & Forecast Reports for the first half of 2012, demand for new apartments remains robust, and this trend looks set to continue.
In Sydney, Colliers reported that despite supply levels rising by 14 per cent, the Sydney CBD recorded a 32 per cent increase in the number of new apartments sold over the last six months.
“Strong demand for apartment living within the CBD and surrounding suburbs has resulted in the proportion of new stock available for sale falling by nine per cent,” Colliers said. “Based on the current sales rate the remaining 542 apartments will be sold within the next 12 months.”
"The strength of the Sydney CBD and surrounding apartment market is set to continue due to limited supply options and falling interest rates," the report added.
Apartments in Canberra were also attracting buyers, the report said, particularly in the city’s inner north and inner south precincts with the proportion of available stock falling by two percentage points even though supply levels have risen by 14 per cent.
In Brisbane, Colliers said appetite for new boutique developments has been evident over the last six months with several new projects close to selling out in the first three to six months of their release.
“Traditionally, activity has been slightly subdued in the first period of each year; however this has been the best performing March quarter since 2003,” Colliers said.
Even the much maligned Gold Coast market is showing signs of a turnaround.
“Buyer confidence appears to have lifted on the Gold Coast with 113 new apartment sales reported for the March quarter, a 49 per cent increase over a three month period,” Colliers said.
“With no new stock entering the market in the short-term, availability continues to fall which will lead to supply shortages in some areas.”