news

Apartment market hits four-year low

There are just 1,225 apartments on sale in Brisbane at the moment according to Place Advisory, the lowest number in four years.

Strong demand in Brisbane has sent stock in the new apartment market plummeting, which at the current sales rate, would supply the market for less than six months.

“With new apartment sales remaining strong and supply having fallen to a historical low, it’s evident there is a continued undersupply of new off-the-plan stock in inner Brisbane,” said Place Advisory director Lachlan Walker.

Mr Walker said that while fewer sales had been recorded over the March quarter than the record-breaking December quarter of 2013, the sales rate was still well above historical averages, being almost twice the 10-year average of 326 unconditional sales per quarter.

“While some commentators have implied the Brisbane market is likely to be oversupplied in the near term due to the proposed pipeline of apartments, in our opinion a majority of these projects will never actually make it to the open market, hence the undersupply will endure in the near term," he said.

“There is indeed a substantial pipeline of proposed apartments, today numbering 22,000, but this has existed for more than six years and is to be expected of a city whose population is set to double in the coming years.

“In reality, the lending hurdles and the banks’ tight purse strings will ensure only feasible residential projects enter sales and marketing and evolve into the construction phase.”

Brisbane has been tipped to be an investment hotspot in 2014, with leading economist Dr Andrew Wilson believing all the fundamental ingredients are there.

“The market is moderating at the moment, but we are seeing a few key areas, such as Brisbane, which are expected to buck this trend,” he said earlier this year.

Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.
Opps.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Location
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
BLUE BAY 49.18%
2.
PAMBULA 43.5%
3.
BERKELEY VALE 42.74%
4.
POINT PIPER 40.52%
5.
NORTH TURRAMURRA 38.12%
Apartment market hits four-year low
SPI logo