Brisbane achieves extended price growth alongside reducing stock levels

Place Advisory’s Spring Apartment Report highlights that Brisbane’s apartment market remains buoyant while new projects coming to market continue to decline. Overall encouraging fundamentals have continued to deliver price growth for Brisbane’s apartment market for yet another quarter.

There were 877 off-the-plan sales made during the June quarter, representing a substantial spike from 228 sales in the March quarter. The weighted average sale price of $921,921 reflects a 10% increase from June last year.

There’s estimated to be just two months of supply currently available, given the current sales rate. 75% of projects are sold out, and it’s considered that demand will quickly absorb the supply of currently deferred projects when they hit the market.

Place Advisory has identified 11 projects over 9 storeys within the inner ring to be currently under construction, including those that are no longer on the market.

This will amount to 1,534 new apartments to be completed by early 2024 with Woolloongabba, South Brisbane and Kangaroo Point seeing the majority of incoming supply.

Project deferrals are rising, a trend that will exacerbate supply and demand pressures if continued.

76 projects in the pipeline for Brisbane’s LGA have been deferred within six months. This reflects a sizable increase from just 15 in the 6-months to Dec 2021.

Source: Place Advisory

Place Advisory partly attributes this to the rising construction cost and uncertainty surrounding the unfortunate collapse of some building companies over the last 12 months. It is assumed that this will flow through to apartment price growth across Brisbane.

Click here to read the full report by Place Advisory.

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