Brisbane’s population over 60 years, which has grown by 62 percent over the past two decades, are dominating the Inner Brisbane apartment market and driving new product types, as they harness inherent wealth to downsize from houses.
Increased demand, coupled with challenges in delivery due to inflation and construction saw only 11 projects being sold off-the-plan at the end of March 2022, equating to approximately 1,128 apartments.
At the same time back in 2013, the Inner Brisbane apartment market pipeline had 42 projects, equating to just over 4,000 apartments selling off-the-plan.
With 11 Councils across South-East Queensland recording a median house price above $500,000 for the first time in history, and rental vacancy rates reaching a record low of 0.7 per cent in May 2022, Colliers’ Director of Residential Jon Rivera predicts that conditions are ripe to attract more investors.
“The off-the-plan apartment market is in a dynamic position, with house prices within Inner Brisbane finally registering a substantial increase, creating one of the largest gaps in value between the two asset classes ever recorded and forging a new era for the Inner Brisbane apartment market,” Mr Rivera said.
“The forecast for more rate rises this year to combat inflation will keep rental supply tight and demand high.”
The off-the-plan apartment pipeline is projected to increase in the coming year, with Inner Brisbane potentially seeing an additional 3,000 apartments to enter the off-the-plan market between the end of March and December 2022. Most of this pipeline is located between the Inner North and South, with the Inner East likely to remain significantly under supplied.
The dumbbell demand shift for well located, lifestyle focused, infrastructure-connected and low maintenance living will continue to be driven by South-East Queensland’s population of over 60’s and the largest demographic group being those aged below 19 years of age as they emerge into property over the next decade
“The story of the next couple of years of Inner Brisbane apartment development will be one of growth, triggering a decade of never seen before product shifts and real estate demand between housing and apartments.” Mr Rivera said.
Currently, approximately 30 projects are under construction, equating to 3,805 apartments which are projected to enter the market between now and 2024. A total of 61 projects were monitored at the end of the first quarter of 2022, with most of the supply within the CBD and Inner South precincts.
Related Articles
