City Beat September 2023: Locals snap up off the plan projects in and out of Brisbane
Brisbane unit vales continued to grow over September as supply remains incredibly tight in the Queensland capita.
CoreLogic's monthly Hedonic Home Value Index showed another surge in Brisbane unit vales over last month, a further 1.1 per cent. The rolling quarterly gains of 3.7 per cent makes the Brisbane unit market one of the best performing unit markets in the country.
The Brisbane unit median is now $539,169, a rise from the previous months $520,000.
CoreLogic Research Director Tim Lawless said the performance of the housing market in Brisbane reflects the underlying supply dynamic, with advertised supply levels around 40 per cent below the previous five-year average.
"The trend in advertised stock levels is a key influence on housing values," Lawless says.
"The flow of new listings has been on an upwards trajectory since early June, bucking the normal seasonal trend where new listings are typically flat to falling through winter. Over the four weeks ending September 24th, the flow of new capital city listings was 14 per cent higher than at the same time last year and 8.0 per cent above the previous five year average."
Lawless notes however that, while total capital city listings remain below last year and less than the five-year average, there is a clear upswing in available supply.
What's happening in the Brisbane off the plan apartment market?
The Brisbane off the plan apartment market is firing on all cylinders, still driven by a lack of supply across the city.
The supply constraints was evident in Rider Levett Bucknall's 2023 Crane Index which showed the Queensland capital recorded a net loss in crane numbers over the past six months.
Pikos Group have timed the relaunch of their Kangaroo Point apartment development, Skye Residences, perfectly, at a time where there's little to no premium riverfront apartment projects.
They've secured a number of sales at the luxury two-tower, 68-apartment development on one of the best sites in the whole of Brisbane.
Pikos Group CEO Michelle Wooldridge says the response from the immediate local market has been overwhelming, with Brisbane buyers accounting for $20 million in sales over last month alone.
"Many buyers have viewed more than five residential projects and revisted Skye, realising it cannot be matched for quality of finish and its absolute riverfront location," Wooldridge says.
“People can see the tower crane in place, a full basement completed and that construction of the building is progressing and a reality. While many other projects have been put on hold, Skye is clearly progressing and this certainty has boosted demand.”
Pikos recently completed the excavation of the basement on the River Terrace site, a major milestone in construction. They've appoted Tomkins Commercial to build the project, which will be complete in 2025.
Read more: Pikos advance construction at Kangaroo Point apartment development, Skye Residences
Wooldridge says buyers were attracted to the views on offer and apartment sizes, with all luxury residences featuring uninterrupted views of the Brisbane City skyline, South Bank, the Botanic Gardens and the Brisbane River.
“We are finding that buyers require a visual demonstration of value which Skye offers in abundance including a strong recognition of, and appreciation for, generous use of natural stone throughout the residence, premium Vzug appliances and Parisi tapware, master king sized suites with upgraded built-in wardrobes, and ensuites with baths
“Our purchasers are motivated to upgrade their living environment, and at the same time, maximise a riverfront lifestyle on Brisbane’s premier dress circle, within walking distance of waterfront dining and the CBD."
At the other end of the market, longstanding Brisbane developer Azure has continued its success in Brisbane's northern corridor, doubling down on what sales manager Allyce Kluger says is a niche market to be developing in.
"We're one of few developers creating design-led and amenity rich townhouses in the northern corridor," Kluger says, adding that the northern hub has "everything a buyer would need."
"The northern corridor has grown in popularity, with good schools, transport and retail. Our projects are more price pointed than a house, while families have also been attracted to a lock up and leave, low maintenance lifestyle which a house doesn't tend to offer," Kluger said.
Azure have been developing in the northern corridor for a number of years. They've already sold two thirds of their yet to be launched 76-townhouse development Willow in North Lakes, and they're soon to launch Elwood by Azure, another 68 townhouses in Mango Hill bordering a nature reserve.
They're currently construction their sold out Munro by Azure in Bundamba.
Kluger said Azure's biggest marketing tool is to point prospective buyers in the direction of their previously completed projects nearby to show what it would be like living in an Azure community.
"We have 25 year caretaking agreements in every community we develop to ensure we deliver on the promise and our properties remain special forever. We are also a builder developer and can therefore give buyers confidence in the final price, having a deep understanding of the true construction costs.”
Next year Azure will launch their Casuarina project at 6 Grand Parade which will have 91 "subtropical" apartments and terraces.