The Real Estate Institute of Queensland has said the Brisbane unit and apartment market is in a growth phase, underpinned by strong investor demand and changing lifestyle preferences.
Speaking to Real Estate Business, REIQ acting chief executive Antonia Mercorella said apartment developments are rapidly transforming Brisbane’s urban landscape, becoming ever more emblematic of the city’s lifestyle and global aspirations.
“As new apartment developments continue to spring up in the city’s most coveted inner suburbs such as Newstead, Teneriffe and South Brisbane, they’re attracting a new breed of investors and occupiers," she said.
“These include empty-nesters looking to downsize, younger owners who want an inner-city lifestyle and international students seeking accommodation close to campus.”
Ms Mercorella said according to the REIQ Residential Rental Survey released in August, the vacancy rate for the Brisbane Statistical Division eased to 2.3 per cent at the end of June.
“This is compared to a vacancy rate of 1.9 per cent at the end of March, which is a typical trend for the first six months of the year,” she said.
“We believe the Brisbane market can absorb the new supply because historically there’s been a lot of pent-up demand for apartments in the inner city.
“That’s why the apartments that are now coming on to the market in Brisbane are being snapped up so quickly.”
Ms Mercorella said inner-city apartment sale rates had remained above the long-term average in the 12 months to March 2014.
“Units are growing their overall share of the Brisbane housing sales market, up from 27 per cent of total sales in the 1990s to 40 per cent now,” she said.
“There’s a very strong pipeline of development in inner-city Brisbane, with industry sources estimating up to 5,500 new units will come online by the end of 2014.”