Brisbane CBD apartments experience strong gains
Brisbane CBD luxury apartments priced over $1 million have experienced an average capital gain of $207,241. As reported by Colliers International there were 29 apartments sold in the last 12 months at an average sale price of $1,515,172.
“Whilst the sales volumes may seem light on, it does indicate that there are not many options in the CBD that suit purchasers with a budget of over $1 million, creating competition in a limited market place,” said Lily O’Connell, Residential Project Manager at Colliers International.
“As reported by Urbis, there were only four new developments within the CBD over the June quarter, with only two additional projects expected to enter the market in the next six months.
“Due to the demand for quality product within the CBD, Mary Lane’s three bedroom residences are proving very popular, particularly with owner occupiers.
“These north facing residences are selling for an average of $1.49m and feature 2.7m high ceilings, exclusive on-floor storage and expansive glazing with views to the Story Bridge and Brisbane River.
“Mary Lane residents can also enjoy hotel services offered by The Westin Brisbane such as in-room dining, maid service, use of hotel spa, bar and restaurants,” said Ms O’Connell.
Sunland Group’s luxury Abian residential tower in the heart of the Brisbane CBD was entirely sold out last year, with apartment prices averaging $1.6 million.
“Early re-sales at Abian are already achieving significant growth, eight months ahead of the project’s completion,” said Ms O’Connell.
According to the Inner Brisbane residential apartment market report by Urbis, the June quarter 2016 has seen sales rates for new apartments within inner Brisbane experience a slight decline.
“This has been on the back of political and regulatory distractions, however the outcome is that supply of new developments coming to the market – the future pipeline of apartment product has started to self-regulate,” said Paul Riga, Associate Director at Urbis.
“Primary factors driving the slowing supply of product are increasing construction costs, high development site acquisition costs, a competitive pricing market, and added costs required to give developments a point of difference.
“These factors have culminated with tightening developer finance across the Inner Brisbane residential market. The positive from this slowdown in future supply is that it will allow product under construction to absorb into the rental market without an ongoing flow of high levels of new apartment supply.
“The vacancy rate was at 0.6 per cent in March quarter 2016, with over 2,350 new and near-new apartments being surveyed across the inner Brisbane.
“This indicates a significantly tighter rental market when compared to the total inner Brisbane rental market, which recorded a 3.3 per cent vacancy rate for houses and units according to the Real Estate Institute of Queensland (REIQ),” Mr Riga said.