City Beat April 2024: Brisbane unit market outstrips house growth as boom continues
Brisbane's unit market will not slow down.
CoreLogic's Monthly Hedonic Index showed growth in the apartment and townhouse market across the Queensland capital outstripped houses again, with value gains of 1.5 per cent in March.
The median unit value in Brisbane is now at $587,000, continuing to close the gap on Melbourne, whose median unit value is $612,000.
Brisbane unit values are now 4.1 per cent up over 2024, the second best performing capital behind Perth. Comparatively, Brisbane houses are up 2.8 per cent over the same period.
What happened in Brisbane’s off-the-plan apartment market in March?
While prices continue to boom across the unit sector, there's still little new movement in Brisbane's tightly held new apartment supply.
Charter Keck Cramer says the Brisbane market will be chronically undersupplied for the next two to three years.
Charter Keck Cramer's Metro Brisbane State of the Market H2 2023 found there were just 1,100 apartments launched in 2023, -76 per cent less than the decade average, while low completions are forecast for the next three years.
They did note that recently launched projects are achieving strong sales results.
"These are priced predominantly at the upper end of the market and targeted towards those who can accept the higher price points required to offset increased build costs," the report noted.
They said other local buyer segments remain priced out of the market or are disincentivised to buy given the uncertainty with interest rates and the significant upfront financial handbrake of stamp duty.
Urbis also noted that the stock levels in Brisbane have shrunk toward five-year lows.
The Urbis Apartment Essentials Report showed there were 112 sales in Q4 2023 in Brisbane, with the lowly stock levels resulting in just 512 apartments available to buy.
Supply has been dwindling since Q1 2023 when there were nearly 1,400 apartments on the market with around 500 of those being sold.
In response to strong demand at the upper end of the market, Sekisui launched the Opulent Release in their penultimate stage of their $1.2 billion West End master planned precinct, West Village.
The Opulent Release comprises just four and five-bedroom apartments toward the top of the towers of Uno and Duo, which together form the Allere Collection, which comprises two towers, Uno and Duo.
Read more: Sekisui release final apartments in West Village's Allere Collection
Uno and Duo, which are 95 per cent sold, will be the second to last buildings in the 2.6-hectare West Village precinct which Sekisui started developing in 2016.
The appeal of the Allere Collection spans a diverse demographic, attracting first-home buyers, pet owners, and both young and established families.
The prime location on Mollison Street, close to seven schools, further enhances its allure among families seeking convenient access to education hubs.
The broader West Village precinct also showcases the heritage-listed former Peters Ice Cream Factories, a nod to the area's industrial heritage.
Upon completion, West Village will comprise 1,200 residences, accompanied by 20,000 sqm of commercial space, an 18,000 sqm retail precinct, and a one-hectare expanse of open parklands and heritage laneways.
Elsewhere Mosaic Property Group sold out their Toowong apartment development, The Prescott, with all 100 apartments snapped up before its completion.
The Prescott is Mosaic’s third project in Toowong following the successful The Patterson by Mosaic and Kensington by Mosaic.
Mosaic partnered with DKO, their second collaboration following the rapid sellout of The Mowbray in East Brisbane. The architectural design incorporates cascading and climbing plants on each facade, creating green spines throughout The Prescott.
Prospective residents of The Prescott can anticipate a lifestyle that takes advantage of Brisbane's subtropical climate with rooftop recreation spaces that include a pool, a gym with a yoga lawn, and multiple dining areas with panoramic views of the Brisbane River, Mount Coot-Tha, and the city skyline.
Mosaic's building arm, Mosaic Construction, has already completed the ground-level and level-two concrete slab pour in the last two months.