Brisbane Soaking Up the Stock As New Apartment Launches Dry Up
Announcement posted by Urbis 28 Feb 2019
Today, leading property experts, Urbis released their latest update of the Apartment Essentials, Australia’s most comprehensive new apartment survey. This latest release features a 2018 summary as well as a look into what 2019 has in store.
The Inner Brisbane region recorded 138 sales in the fourth quarter of 2018, dropping back down after a stand-out quarter three result. There was a total of 840 new apartment sales in 2018, almost 30 per cent lower than 2017. Paul Riga, Director at Urbis, summarised, ‘the fourth quarter result was to be expected, with no new projects launching, buyers are essentially soaking up the current projects on the market’.
Across Inner Brisbane, new apartment launches dropped off in 2018, down by around 35 per cent on 2017 launches. Available stock has fluctuated throughout the past two years, however after a peak in 2017 Q2 with a record 3,243 apartments available at the start of the quarter, available stock has hovered around the low to mid 2000s throughout 2018. Sales as a percentage of available stock have also dwindled, dropping to a record low of 9.4 per cent in the final quarter of 2018. The downward movement in available stock highlights the continued absorption of this product, and importantly that demand for new apartments is still present in the market.
Whilst the depth of the investor market is still subdued, owner occupiers are the key target market, with many projects now boutique in nature and catering to the needs of a longer-term resident. This can be noted in the results, as despite the drop in the volume of sales, the weighted average sale price was significantly higher than 2017’s quarterly reports, indicating that the style and quality of stock currently selling has changed.
Whilst the latter half of 2018 saw conservative developer activity, many developers are being buoyed by the levels of sales absorption, low vacancy rates and stable growth drivers for Brisbane.
Approximately 2,000 apartments are anticipated to launch in the three quarters of 2019, and with a replenishing pipeline, it is likely to register a pick-up in sales.
‘Ultimately it will be access to finance (for buyers and developers) that will temper the inner Brisbane market in the short-term,’ said Mr Riga, ‘but the drivers of demand are there, and smart developers are already looking at opportunities for their next move’.
Urbis Brisbane Apartment Essentials Q4 2018 snapshot:
Stephanie Keith, Senior Brand & Clients Consultant
Ph: 02 8233 7633 E: skeith@urbis.com.au
Rebecca Jagger and Alexis Carroll at DEC PR
Ph: 02 8014 5033 E: urbis@decpr.com.au
About Urbis Apartment Essentials
The Urbis Apartment Market Essentials is the most comprehensive national survey in Australia, and the only survey for which the sales data for apartment projects with 25 or more units is collected at the time of contract rather than at settlement.
Projects with 25 apartments or more are tracked from initial application through to the building being sold out for projects across Perth and key areas of density across Sydney, Melbourne, Brisbane and Brisbane. As well as tracking the status of 2,513 developments Urbis receives surveys from 295 apartment developments.
Urbis recognises the traditional owners of the land on which we work. Learn more about our Reconciliation Action Plan.
The Inner Brisbane region recorded 138 sales in the fourth quarter of 2018, dropping back down after a stand-out quarter three result. There was a total of 840 new apartment sales in 2018, almost 30 per cent lower than 2017. Paul Riga, Director at Urbis, summarised, ‘the fourth quarter result was to be expected, with no new projects launching, buyers are essentially soaking up the current projects on the market’.
Across Inner Brisbane, new apartment launches dropped off in 2018, down by around 35 per cent on 2017 launches. Available stock has fluctuated throughout the past two years, however after a peak in 2017 Q2 with a record 3,243 apartments available at the start of the quarter, available stock has hovered around the low to mid 2000s throughout 2018. Sales as a percentage of available stock have also dwindled, dropping to a record low of 9.4 per cent in the final quarter of 2018. The downward movement in available stock highlights the continued absorption of this product, and importantly that demand for new apartments is still present in the market.
Whilst the depth of the investor market is still subdued, owner occupiers are the key target market, with many projects now boutique in nature and catering to the needs of a longer-term resident. This can be noted in the results, as despite the drop in the volume of sales, the weighted average sale price was significantly higher than 2017’s quarterly reports, indicating that the style and quality of stock currently selling has changed.
Whilst the latter half of 2018 saw conservative developer activity, many developers are being buoyed by the levels of sales absorption, low vacancy rates and stable growth drivers for Brisbane.
Approximately 2,000 apartments are anticipated to launch in the three quarters of 2019, and with a replenishing pipeline, it is likely to register a pick-up in sales.
‘Ultimately it will be access to finance (for buyers and developers) that will temper the inner Brisbane market in the short-term,’ said Mr Riga, ‘but the drivers of demand are there, and smart developers are already looking at opportunities for their next move’.
Urbis Brisbane Apartment Essentials Q4 2018 snapshot:
- Weighted average sale price recorded: $831,884
- 48% of buyers were owner occupiers
- 674 apartments approved in the quarter
Stephanie Keith, Senior Brand & Clients Consultant
Ph: 02 8233 7633 E: skeith@urbis.com.au
Rebecca Jagger and Alexis Carroll at DEC PR
Ph: 02 8014 5033 E: urbis@decpr.com.au
About Urbis Apartment Essentials
The Urbis Apartment Market Essentials is the most comprehensive national survey in Australia, and the only survey for which the sales data for apartment projects with 25 or more units is collected at the time of contract rather than at settlement.
Projects with 25 apartments or more are tracked from initial application through to the building being sold out for projects across Perth and key areas of density across Sydney, Melbourne, Brisbane and Brisbane. As well as tracking the status of 2,513 developments Urbis receives surveys from 295 apartment developments.
Urbis recognises the traditional owners of the land on which we work. Learn more about our Reconciliation Action Plan.