Are Brisbane apartments coming good?
Are we finally seeing a resurrection of the Brisbane apartment market? Or at least a light at the end of a tunnel? It seems like we may indeed be. While the apartment construction market is still weak, recent reports are showing that the Brisbane apartment rental market is showing signs of recovery. Rental apartment vacancy rates have fallen over the last quarter with both Urbis and the REIQ reporting a drop in the vacancy rate for inner city Brisbane apartments. This is a good sign for the Brisbane apartment market which has been slow for the past 18 months.
Why are Brisbane apartment vacancies starting to fall?
Put simply, demand is catching up with supply. Population growth in Brisbane and South East Queensland has grown and is continuing to grow. With new residents comes a demand for housing. As developers are still struggling with the weak sales market, they have slowed their building pipelines. This has seen less apartment stock come on to the market in Brisbane allowing demand to catch up to supply.
What does the next 6-12 months look like for the Brisbane apartment market?
The market is essentially resetting itself. From the flurry of apartment construction and sales we saw between 2012 – 2016, to the contraction of construction and sales between 2016 -2018, 2019 and 2020 are looking healthier. The next 12 months look to be returning to the pre-investor-boom market. Developers are scaling down their projects to meet the market and achieve the stricter pre-sale finance requirements. We’re also seeing more owner-occupier stock and less super high density projects. We hope that this means the positive signs we’re seeing for the Brisbane apartment market keep coming.
Are you in the market for a new apartment? If you’d like to buy a Brisbane apartment in the inner city or surrounds our Sales agents currently have some available. Alternatively, if you’re looking to rent a Brisbane apartment, we have a number of apartments for rent available in and around Brisbane city.
