Sun shining on Brisbane’s booming apartment market

Apartment sales are trumping houses in Brisbane as young buyers scramble into the market.

Sunny Brisbane is proving to be a continually hot market as apartment prices boom as buyers are drawn to the lifestyle offered in the city currently spending billions in infrastructure upgrades.

Apartment prices in Brisbane have been the fastest growing since the pandemic compared to Australian cities, with prices up an eyewatering 94% since March 2020, according to REA Group executive editor of economics Angus Moore.

“That’s consistent with the really strong growth we’ve seen in Brisbane generally – detached house prices are also up just shy of 90% since the pandemic,” he says.

Closer to the sun

Part of what has been driving this rapid growth has been the interstate migration to south -east Queensland more broadly over the past five years, Mr Moore says.

“While Queensland has always seen more people moving in than out, interstate migration was particularly strong during Covid, which was a factor in driving home prices.”

Brisbane’s relative affordability compared to Sydney, and to a lesser extent, Melbourne, was also part of the story a few years ago. But with prices up more than 90% – far faster than the growth in Sydney and Melbourne, that’s no longer the case,” Mr Moore explains.

Demand is outstripping supply inner and middle ring suburbs of Brisbane as larger owner-occupier units located in lifestyle suburbs close to public transport are being snapped up quickly by young buyers and downsizers. 

A one bedroom, one bathroom apartment in Brisbane’s Queen Street is listed for sale for $885,000, with a rental appraisal indicating it could achieve between $900 and $950 per week.

A two bedroom and two- bathroom apartment in the Universal Apartments complex in Merivale Street in South Brisbane is also listed for sale for offers over $850,000.

Snapped up

Brisbane real estate agent KC Yeung, of K&S Property Group, has hit a personal milestone, notching up 90 individual property sales in the past financial year.

The new agency still in growth stage attributes the large number of apartment sales to a dramatic shift in the Brisbane property market, noting that younger buyers seeking affordability and lifestyle flocking to apartment living.

Buoyed by state government incentives and grants for new builds, stamp duty exemptions and shared equity schemes, buyers are also circling the market ahead of the Brisbane 2032 Olympic Games, which is also expected to lead to a price surge.

One and two-bedroom apartments with quality finishes and good natural light with spacious balconies and study nooks are highly sought after, Mr Yeung says.

“The buyer pool is a healthy mix. First home buyers, downsizers, local investors and interstate or overseas buyers,” he adds. “Well-presented apartments with realistic pricing often sell at or above the asking price, especially if they stand out in their building or suburb.

“We’ve even broken suburb and building records recently – buyers are willing to pay a premium for quality,” he adds.

He plans to open two new K&S Property offices in Brisbane suburbs on the back of the surge in interest in the market.

“Earlier in my career, apartments weren’t the hot ticket item, overlooked in favour of a house. Now, they’re under contract within a day,” Mr Yeung says.  

“Buyers are keen to get in before prices climb further. It’s a race to either upgrade, relocate or capitalise on the market’s momentum.”

Mr Yeung urged buyers to do their research to understand recent sales in the area, the differences between buildings and what adds value, such as views, parking or storage.

“Get finance pre-approved so you’re ready to move quickly. If you’re serious about a property, make a strong and clear offer early – sometimes waiting too long can cost you the opportunity.”

He also recommends asking the agent what terms the seller prefers – flexibility on settlement dates or other conditions can make the offer more attractive, even if the offer isn’t the highest.  

Looking ahead  

The Brisbane apartment market looks set to remain hot for a while yet given that further interest rate cuts are expected this year.

If the 2000 Olympic Games is anything to go by, apartment prices in Brisbane could continue to rise.

In the lead up to the games, development in Sydney boomed as houses, townhouses and units were constructed as part of the athlete’s village development. The suburb of Sydney Olympic Park, totaling 6.6 square metres, was established in 1996 as part of the plans.

This article first appeared on Mortgage Choice and has been republished with permission.

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