Brisbane Apartment Market Affordability
The latest data provided by the Real Estate Institute of Australia shows that as at the December Quarter 2014, Brisbane ranked as the third most affordable apartment market in Australia with a edian price of $385,000 (1). According to this data, Brisbane’s median apartment price is $127,600 more affordable than the national median of $497,200. When compared with Sydney’s median apartment values, Brisbane apartments are $222,100 lower and Melbourne $126,500 lower. The affordable position of Brisbane apartments is a becoming key driver underpinning increasing levels of interstate migration is resulting in uplifts in demand for apartments within Brisbane. With a continuation of escalating demand, growth in median values will follow suit with the Brisbane median expected to climb to the $400,000 mark by December quarter 2015.
(1) Real Estate Institute of Australia – April 2015
Australian Capital Cities – Median Unit Prices
Inner City Residential Apartment Market Property Clock
Brisbane Inner City Apartment Market
Brisbane’s inner city apartment market is comprised of 21 suburbs which sit within a 5-kilometre ring of the CBD. Brisbane’s inner city apartment market currently occupies an opportune position on the property clock, sitting at 7 o’clock. The market has entered its next growth phase with underlying fundamentals in place for a continuation of improving levels of demand in the face of what remains an undersupplied market. Opportunities to capitalise on the market’s upswing are apparent across both underlying values and rental returns. Both long term (10 year) and short term (5 year) demand has remained relatively stable at 3,800 and 3,500 apartments respectively. During the market’s peaks in 2007 sales volumes rose to sit at 5,100 in line with introductions of new apartment developments into the inner city clearly demonstrating the market’s capacity and willingness to absorb new apartment supply as it enters the market.