Brisbane's Manhattan-isation continues: Herron Todd White

Brisbane's Manhattan-isation continues: Herron Todd White
Brisbane's Manhattan-isation continues: Herron Todd White

Brisbane's 'Manhattan-isation' continues at a staggering rate according to the September Month in Review from Herron Todd White, who see the construction of tall residential towers to continue popping up over the next few years.

The report estimated between seven and ten years of housing supply currently in the pipeline and mentioned the possibility of hitting a saturation point soon and noted CBD urbanisation will continue due to demand from hipsters and empty-nesters.

According to HTW, one bedroom units without car spaces making their mark.

"This design means a lower buy-in price point for inner-city abodes, particularly for those single- and couple-residents, and investors that are looking to tap into these tenants," the report noted.

"There are a lot of analysts and observers speculating that our market will be the next capital-city boom. As a consequence, supply of investor style, off-the-plan stock is on the rise and the full impact of the oversupply situation may not become apparent until after many of these buildings are completed in some 12 to 18 months.

"Add to this the recent changes from the Australian Prudential Regulation Authority which will curb lending to investors through tougher qualifying criteria and more onerous risk assessment. This is all within an environment of softening rental demand as well, and there are plenty of investors who may not see their initial rent yields maintained."

Tags: 
New Developments Housing Construction

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