Results at the end of the March 2012 are phenomenal. The market well and truly over performed. The results are the strongest we have seen in over a decade and many agents, investors and purchasers alike will be pleasantly surprised.
New residential sales have totalled approximately $228 million dollars with over 448 unconditional transactions recorded.
March is historically the quietest selling period but 2012 has bucked the trend.
448 unconditional sales were recorded in the first quarter. That is 80% higher than the same period in 2011.
A weighted average unconditional sale price of $506 529 was recorded for the quarter.
The weighted average sale price is a 6% softening from the previous period however, in real terms, confirms very little change in the weighted average price for over 18 months and propensity for buyers to seek cheaper apartments.
The inner Brisbane apartment market now has more projects, 36 of the 48 selling off-the-plan, completed and under construction while only 12 are awaiting construction.
Four new projects registered their first unconditional sales during the first three months of 2012. Showground Hill’s- The Tower, The Dunmore, The Midtown and The Vine performed well.
With the continuing strength in sales rates through the March quarter, the Inner Brisbane apartment market supply has tightened further. As at the 31
st
March, 2012 the current apartments will supply the market for 14 months based upon the March quarter sales rate.
An avalanche of unconditional sales has resulted from a pent up demand for affordable residential product. Buyers sought and have been provided with product of perceived value for money, which above all else is the strongest driver for purchase.
Investors are currently driving the off-the-plan market. As vacancy a remains low at only 1.7% and rents continually increasing, up 9.1% in the past 12 months, the Brisbane market is currently an investors dream.
This is unlikely to change in the near term as the mining boom moves from strength to strength, fuelling low unemployment rate and subsequent wage growth in the South East corner. A time will arise where it becomes cheaper to own than to rent, therefore providing the catalyst for a higher percentage of Generation Y to move toward home ownership.
Snapshots
CBD
The March 2012 quarter produced 46 unconditional sales in the Brisbane CBD. A weighted average sale price of $509 783. 332 apartments remain for sale across only four residential projects. A supply of 21 months for Brisbane CBD, based upon the March 2012 quarter sales rate.
North of the River
The North of the River, which now spans 28 individual projects, recorded the majority of unconditional sales for the fourth quarter running.
South of the River
A total of 124 unconditional sales were recorded during the period to produce a weighted average sale price of $538 306 across the 16 residential projects actively selling in the market, the majority of which transacted in the South Brisbane and Woolloongabba precinct.
What should you do with all of this information? Allow it to assist you in owner occupying, investing or developing in the Brisbane property market.
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As a Place Researcher, Lachlan’s role is to gather both internal and external market intelligence to gain a comprehensive understanding of residential projects and provide product specific advice to clients. This reduces associated risk and provides the information necessary for them to make an informed decision. He has worked closely with a number of developers, from site conception through to product delivery and provided advice to those including Lend Lease, Australand, Laing O’Rourke and Leighton Properties.
