Place Advisory’s annual report on Inner Brisbane’s apartment resales provides insight into how each market has performed over the past ten years.
By separating each apartment sale into two categories, new or old, we can determine how they have performed and which is the better investment. An apartment resale is defined as a sale that occurs after the initial sale of an apartment within a development.
Place Advisory has analysed Inner Brisbane’s new and resold apartments over the past ten years and we have summarised our findings in the following points:
- As shown in the graph below, the most recent six month period ending June 2016 saw resold apartments record a median sale price of $445,000, whereas new apartments recorded a median sale price of $535,000.
- Over the past ten years ending June 2016, apartments that have been resold in Inner Brisbane have been, on average, 17% more affordable than new apartments.
- Price growth for resold apartments has outpaced that of new apartments, with resold apartments experiencing 4.0% price growth per annum over the past ten years, whereas new apartments have experienced 3.1% price growth per annum.
- Over the past five years, with the exception of the most recent 12 month period, the ratio of old to new apartment sales in Inner Brisbane have been relatively similar. This is due to the record levels of off the plan apartment stock available.
- The most recent 12 month period ending June 2016 has seen new apartment sales decrease considerably as a result of numerous influential issues across the wider economic market.
It is widely known that the Inner Brisbane property market has softened since the GFC. Average capital growth peaked at 10.5% during the six month period ending June 2008. Capital growth has since experienced several consecutive periods of decline, reaching a low point during the June 2016 six month period at 2.6%. Over the past ten years, average capital growth has been recorded at 5.6% per annum.
The above table summarises the top ten suburbs within Brisbane’s Inner Ring that have achieved the strongest capital growth for resales over the past 12 month period ending June 2016. Located on the Brisbane River and just 3.5 kilometres from the Brisbane CBD, New Farm has outperformed the wider market and has achieved the highest average capital growth of 5.6% over the past 12 months. Highgate Hill and Hawthorne also achieved high capital growth, averaging 5.0% and 4.9% price growth respectively.