One bedroom units outnumber two bedders in Brisbane: Urbis

One bedroom units outnumber two bedders in Brisbane: Urbis
One bedroom units outnumber two bedders in Brisbane: Urbis


One bedroom units topped new apartment sales in Brisbane in the March quarter, even though sales volume in the city fell nearly 40 percent in the March 2017 quarter from the previous quarter, according to new research by Urbis.

Brisbane’s new apartment market recorded 302 sales in the quarter, but despite the lesser numbers, the weighted average sale price has strengthened compared to a year ago. 

The overall weighted average sale price was $670,861 –  the second highest weighted average sale price ever it said. The price was $595,664 in the comparable quarter a year back, the Urban Developer reported.

The proportion of foreign investor buyers also fell down to 4 percent compared to 20 percent one year ago.

Urbis associate director Paul Riga said some results were surprising.

The one-bedroom one-car product made up the majority of sales (39 percent) for the first time since 2014.

“This quarter we saw some survey results which the market didn’t anticipate, in addition to others we knew were coming,” Riga said. 

“Firstly, one-bedroom one-car product took on the two-bedroom market. These one-bedroom sales were split across a range of developments and precincts, the majority being evenly split between the Inner South (26 percent), Inner West (24 percent) and Inner North (22 percent).”

The one-bedroom one-car product is also the most in demand rental type in addition to the most sold stock type, the Urbis Inner Brisbane Apartment Rental Review said.

“Developers need to look close to home and deliver product attractive to the local investor and owner occupier. The split between owner occupier (19 percent), local investor (26 percent) and interstate investor (32 percent) purchases remained relatively even. However, over the last 12 months foreign investor buyers has gone down from 20 percent to 4 percent. With regulatory changes to our lending, we were expecting this decline,” Riga said.

New apartment supply fell in line with the sales decline, with just 225 units launched this quarter compared to 668 in the previous quarter.

There were more sales than apartment launches  – a good sign because it allows absorption of supply. 

“We will continue to see a slowdown in supply,” Riga said. “Once again apartment approvals dropped to 1,299 units – the lowest number we have recorded since 2014. It is important that the market continues to self-regulate.”

In spite of lesser sales and supply numbers, there was no noted difference in pricing across Inner Brisbane, according to Urbis.

“One-bedroom one-car product pricing did decrease by $20,000, which may have contributed to the increase in sales but it was also location and product specific,” Riga said. “However two, three, four bed and penthouse product all registered an increase in the weighted average sale price.

Riga doesn’t expect a drastic fall in new inner city apartments.

“I don’t expect to see any drastic reduction in price, especially for quality new product in inner city locations.” 

Some recent sales include a one-bedroom apartment with car parking at 210/28 Masters Street, Newstead, Qld 4006 that changed hands for $318,000. The selling agency was Professionals.

One bedroom units outnumber two bedders in Brisbane: Urbis 

 

Another one-bedroom apartment with car park at 507/113 Commercial Road, Teneriffe, Qld 4005 sold for $415,000 through The Place.

 

One bedroom units outnumber two bedders in Brisbane: Urbis 

Urbis Brisbane Apartment Essentials Q1 2017 Snapshot

The Brisbane Apartment Essentials Report found:

•302 sales were recorded in the March 2017 quarter, a 37 percent drop in sales from the previous quarter which recorded 480 sales.

•The weighted average sales price for the March 2017 quarter was $670,861, only a $2,420 decrease compared to the December 2016 quarter. This is the second highest weighted average sale price ever recorded.

•One-bedroom one-car product made up the majority of sales at 39 percent of total sales, this is the first time since 2014 that we have seen one-bedroom sales overtake two-bedroom sales.

•Less than a third of new apartments launched in the March 2017 quarter (225 units) compared to the previous December 2016 quarter (668 units).

•Foreign investor buyers down to 4 percent compared to 20 percent one year ago. Split between owner occupier (19 percent), local investor (26 percent) and interstate investor (32 percent) purchases relatively even.

Tags: 
Brisbane Apartment Sales

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