Sales volumes for new apartments in Brisbane have spiked, causing one property analyst to predict the market is set for a 'monster' year in 2014.
The Inner Brisbane Apartments Market Report, September Quarter 2013, produced by Place Advisory, found 681 new apartments were purchased over the quarter, which was a 25 per cent increase on the previous quarter, and almost double the sales volume for the same period in 2012.
The report also found average prices have been trending upwards – from $518,000 in the March quarter to just under $600,000 in the September quarter.
Lachlan Walker, director of Place Advisory, said all the signs are indicating 2014 will be a bumper year for the Brisbane property market.
“We expected sales throughout 2013 to increase, but so far the market has outperformed even our balanced expectations,” he said.
“The 681 transactions recorded in the September quarter is actually the highest sales figure we have seen in a decade.
“We anticipate that going forward, sales volumes will continue to sit above average numbers for at least the next 12 months, and possibly even the next two years.”
According to Mr Walker, the Brisbane market is offering investors more value for money than some of the city’s interstate rivals.
“Median prices for apartments in Brisbane are around 30 per cent less than those in Sydney, and around 20 per cent less than those in Melbourne," he said.
“In addition to new apartments representing good value in Brisbane, the city also has the right fundamentals for growth, particularly considering the supply level.
“This essentially amounts to an overall shortage of supply in the market, particularly investors, as they look to take advantage of upcoming capital growth prospects.”