Brisbane new apartment approvals see big drop in supply

Brisbane new apartment approvals see big drop in supply
Brisbane new apartment approvals see big drop in supply

The latest Urbis data on new apartment supply indicates the Brisbane market registered a big drop in apartment approvals during the first quarter.

It was down from 2686 in the previous quarter to just 306 new approved apartments.

The number of new Brisbane apartment projects launched plummeted to just 12 in 2017 compared with 57 in 2016.

Urbis director of property economics and research, Mark Dawson, said it was "clear the market is self-regulating".

"Though launches have slowed. the appetite for quality new apartment product is still there, and with the right mix of product, price and marketing, developers are able to successfully launch new developments to the public" he told Fairfax Media.

Debt investment manager MaxCap Group recently took over Invesco's debt in AMP's Skytower apartment project in Brisbane.

The US funds giant Invesco lent about $160 million in 2016 to develop the city's next tallest tower where the first stage of apartments is currently settling.

The tower will rise 90 storeys with 1128 apartments.

MaxCap's newly appointed investment director for NSW, QLD, ACT Eddie Law said the lender had confidence in the Brisbane apartment market.

"From a supply perspective, we are seeing a number of projects in the pipeline being pushed back or put on hold.

"New apartment completions appear to have peaked last year, with a reduced forward pipeline helping to stabilise apartment prices."

MaxCap's Eddie Law said the price of Brisbane apartments also remained affordable relative to other cities.

"Average median apartment prices in Brisbane are 80 per cent more affordable than Sydney apartments and 37 per cent more affordable than Melbourne apartments."
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Urbis Brisbane Apartments

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