City Beat February 2024: Brisbane's 2023 property market gains continue into 2024

City Beat February 2024: Brisbane's 2023 property market gains continue into 2024
Joel Robinson February 5, 2024CITY BEAT

There's no stopping Brisbane in either the house or unit market.

January marked yet another month of gains of one per cent or over in both the house and unit market, while other capital cities show a few signs of growth softening, CoreLogic's Hedonic Home Value Index for January showed.

Brisbane's unit market, which incorporates both apartments and townhouses, jumped 1.1 per cent to be 13.6 per cent up in the last 12 months. Across 2023 the unit market gained 12.2 per cent.

The median unit value in Brisbane is now $568,000 and is approaching Melbourne's median of $608,000. Brisbane's median dwelling value (both houses and units), overtook Melbourne at the back end of last year, primarily driven by the housing market.

What's happening in Brisbane's off the plan apartment market?

Feedback from both agents and developers continues to be positive, with high enquiry volumes, high numbers coming through the door, and high conversions.

Kokoda Property is continuing to make sales at its Milton apartment development Ruby Ruby.

The Cottee Parker-designed tower with 144 apartments across 21 levels is fast approaching sell out, having only tentatively launched to the retail market.

The project has incredible amenity, centred on a rooftop wellness space with an infinity pool, a gym, infrared sauna, spa, plunge pool and yoga studio.

Busy Woolloongabba developer Sarazin is too making strides in their latest project Murcia, in East Brisbane on the fringe of the Woolloongabba precinct.

Murcia, on Overend Road just 150 metres from The Gabba, has been one of Urban's most popular Brisbane apartment developments since it launched to the market in June 2023. The 18-level,187-apartment building is named after the Spanish city of Murcia, and has influences of the beachside city throughout its architecture and landscape design.

Sarazin State Director Adam Rainbird says there's plenty of activity in the market, and the start of the year has seen it pick up again.

"We’re seeing a lot of buyers at our Murcia project either upsizing or downsizing locally," Rainbird says.

"We’ve got a variety of owner-occupier stock which suits various different life stages of owner-occupiers.

"We’ve also had buyers from further afield who have their main home in Noosa or even far north Queensland but want a city base.

Rainbird says one of the big drivers of sales at Murcia is the location, with the Cross River Rail a big infrastructure project which will connect future residents to the city in minutes.

He says underpinning the whole off the plan apartment market is a supply shortage, and it’s getting worse.

"If you have a good product on the market, there’s definitely the demand for it."

Holm Developments Founder and Director Godfrey Esmonde says what they're going to focus on in 2024 is providing confidence.

"I think confidence is the key for all aspects of the industry," Esmonde says.

"From a finance perspective the lenders are going to want to be confident in the products appeal, the developers ability and especially the selected builder. Being able to instil confidence in your lender will go along way to securing the necessary funding to get projects up and running. Doubts over any of the above may see projects stall even if on paper the returns look good."

He says from a sales perspective, it's about creating confidence in the market.

"Buyers want to be confident that the developer is competent and has a track record of delivering, they want to be confident the funding is available for the project so that it commences onsite and they want to be confident the builder is financially stable and will be there at the end of the project."

As far as how the market looks for 2024, Esmonde says the outlook is good with inflation slowing and rates possibly stabilising or reducing.

"I think there will be a surge in sales as people become more confident about the general financial outlook but I don’t think it will be a mad rush, too many people have been burnt recently or know someone who has and as such they will be more cautious about jumping in. Thus if you can  instil that confidence you should be ahead of the pack to capitalise."

Holm is currently marketing Ascot Row, just 14 luxury apartments on Stevenson Street in Ascot.

Joel Robinson

Joel Robinson is the Editor in Chief at Urban.com.au, managing Urban's editorial team and creating the largest news cycle for the off the plan property market in the country. Joel has been writing about residential real estate for nearly a decade, following a degree in Business Management with a major in Journalism at Leeds Beckett University in England. He specializes in off the plan apartments, and has a particular interest in the development application process for new projects.

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