Brisbane has weathered the worst of its apartment market slump as stability returns to the sector, new research suggests.
The latest Quarterly Apartment Report from local property marketing and research group Place Advisory suggests stability is returning to the apartment market as sales rates absorb the current supply.
With no major releases hitting the market over the next six months supply is tightening up, and Place Advisory's Lachlan Walker says that the market is positioning itself for growth as Brisbane moves into its next cycle.
Inner Brisbane recorded 175 unconditional sales during the June quarter.
“Up 31 from the previous quarter, and totalling $118 million,” Walker said.
“The weighted average price of $674,714 was up 1.7 per cent compared to the last quarter – it’s a modest increase, but it’s promising.”
Research released by Urbis affirms the view that the tide is beginning to turn in Brisbane’s apartment market.
The owner-occupier market made up almost half of all buyers (48 per cent) of inner Brisbane’s apartment stock in the second quarter according to Urbis Property Economics.
At current sales rates, all current new apartment supply could be absorbed by early to mid-2021.
“Brisbane’s potential for capital growth in the medium term is looking ever more positive as population growth and the economy return to increasingly positive trends and new apartment supply diminishes,” Walker said.
At the end of the June quarter, 21 per cent of the total new apartment market remained available for purchase.
Currently 54 projects are being sold off-the-plan in inner Brisbane, several of which have pushed back their expected completion dates, Walker said.
“Of the 1936 new apartments currently available for sale, 30 per cent are expected to complete construction in the second half of 2018, 31 per cent in 2019 and the balance in 2020.
“This means remaining supply will settle in a more staggered nature, softening any potential negative impacts to the market.”