Brisbane inner city tipped to smash sales records in final quarter

Brisbane’s inner city apartment market recorded a strong September quarter this year, but it’s the closing quarter of 2014 that’s expected to break sales records, according to a new report from Place Advisory.

The Place Advisory Inner City Apartment Market Report says that demand remains strong and while the September figure was below the June quarter, they predict demand will strengthen over December.

While five projects launched over September with a total of 727 new apartments, over the December quarter up to 14 projects with more than 2,200 apartments are expected to launch – the first time the end of year quarter has seen this much activity.

Over September the majority of the sales were one and two bedroom apartments, totalling $428 million in off the plan transactions. The unconditional sale price in Brisbane over the September quarter remained steady at $545,478 (weighted average), which sits 1% below June and 8% down on a year prior.

The 2014 year to date has seen 2,535 transactions. The majority of sales are under $550,000, with two bedroom apartments the most common seller.

New Farm, Newstead and Teneriffe saw the majority of sales over the three months – totalling 637. South Brisbane, West End and Kangaroo Point proved less active with 144.

Remaining apartments for sale (as of the end of September 2014):

• 1,634 (6.2 months market supply)
• Inner North: 1,018
• CBD: 369
• Inner South: 529

Source: Place Advisory

“The September 2014 quarter saw a total of 785 unconditional sales across 56 inner Brisbane projects which is well above the long-term 10-year average of 343 sales per quarter,” Place Advisory’s director Lachlan Walker said.

“The Brisbane inner city apartment market is in a perfect position as we head into the last quarter of 2014 with high demand and more projects coming on to the market.”

Walker said that positive momentum is growing for owner occupiers and investors with the median apartment price substantially below those seen in Sydney and Melbourne, by 45% and 25% respectively.

“Brisbane provides an affordable substitute investment for our southern neighbours with a much greater propensity for growth. This is one of the key reasons Brisbane has had such strong interstate interest the past 12 months,” he said.

 “There is an old wives tale that Brisbane shuts down after Melbourne Cup. We are definitely not expecting that to be the case this year with the December period showing strong signs that we will have a great finish to 2014.”