Colliers said there was currently only 11 projects had been sold off the plan at the end of March, equating to about 1128 units compared with a decade ago when 4000 units were in the pipeline.
It said the largest demographic shift in Australia’s history meant that the inner Brisbane apartment market had become one of the least supplied on the east coast.
But the lack of stock along with rental vacancies below 1 per cent and a median price across 11 councils reaching a record $500,000 for the first time meant the conditions were ripe for strong growth.
About 30 projects were now being built, which meant 3800 units would enter the market between now and 2024, according to Colliers director of residential Jon Rivera.
He said there was a dumb bell-shaped shift in demand occurring. People over the age of 60 were dominating the inner-city unit market and they were using their wealth to drive new types of accommodation. Following them was the big number of people aged below 19 who would enter the housing market over the next decade.
“The story if 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,” Rivera said.
He said Brisbane’s off-the-plan apartment market was in a dynamic position. House prices had lifted substantially and created one of the largest gaps in value between the two asset classes ever recorded.
This would in turn forge “a new era for the inner Brisbane apartment market”.
CoreLogic said Brisbane house prices in June rose by just 0.1 per cent in June.
“Considering inflation is likely to remain stubbornly high for some time, and interest rates are expected to rise substantially in response, it’s likely the rate of decline in housing values will continue to gather steam and become more widespread,” CoreLogic’s Tim Lawless said.
He said unit values were holding their value better than houses because houses consistently outperformed units during the boom period.
“Since the onset of the pandemic in March 2020, capital city unit values have risen 9.8 per cent compared to 24.7 per cent for houses, resulting in better affordability across the medium to high density sector,” he said.
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