Similar to three months prior, the June 2017 quarter shows low sales activity across Inner Brisbane’s off the plan apartment market as challenging conditions continue.
288 unconditional transactions took place across Inner Brisbane throughout the second quarter of 2017, representing a 6% increase on last quarter but a substantial decline of 61% from the same period 12 months prior. However, the weighted average sale price continues to increase. When compared to the March 2017 quarter it has increased by 18%, and by 27% when compared to the June 2016 period.
The following points summarise the results recorded for Inner Brisbane’s apartment market for the three month period ending March 2017.
SUMMARY OF THE JUNE 2017 QUARTER
- Inner Brisbane’s off the plan apartment market recorded 288 unconditional transactions over the June quarter, representing a 6% increase on last quarter.
- Approximately $214 million worth of apartment sales were recorded throughout the June 2017 quarter.
- There are currently 69 projects being sold off the plan in Inner Brisbane.
- A weighted average sale price of $744,097 was recorded for the period, representing an increase of 27% from the corresponding period 12 months prior. This is indicative of a slight change in product mixes sold across the market, resulting in higher sales prices.
- 443 Queen, located in Brisbane City, was the top performer for the June 2017 quarter, recording 48 unconditional transactions.
- Another standout performer was Brisbane Tower 1, located in South Brisbane which recorded 47 unconditional sales for the June 2017 quarter.
- Two bedroom apartments accounted for the majority of unconditional sales over the June 2017 quarter, representing approximately 50% of sales. This was followed by one bedroom apartments, accounting for 38% of transactions. Three bedroom apartments totalled 8% of sales, whilst four bedroom, penthouse and sub penthouse transactions represented the remaining 4% of sales for the period.
- The majority of transactions that occurred during the June quarter, 2017, were priced between $550,000 and $650,000, representing approximately 21.5% of total transactions. This is a decline of 14.5% as compared to last quarter.
- The $450,000 – $550,000 price bracket closely followed representing approximately 20% of total sales for the June 2017 quarter.
- The $750,000 – $900,000 price bracket increased to 14% of total unconditional sales representing the largest increase among all price groups, a change of 6% when compared to last quarter.
- When compared to the March 2017 quarter, all price brackets from $650,000 upwards increased in proportion of total sales reflecting the growth in the weighted average price of off the plan apartment sales
- The South of the River precinct saw the highest number of apartment transactions for the period, recording 114 unconditional sales. Whilst the North of the River precinct recorded a further 104 sales.
- There are currently 2260 apartments remaining for sale representing a supply of 23 months.
Overall, the Inner Brisbane off the plan apartment market has experienced a significant change over the past 12 month period. The market has benefited greatly from the high levels of demand in recent years, however, Place Advisory expects that as we return to a more normal market, the current level of transactions will continue in the short term. We expect that the remainder of 2017 will bring some challenging periods as the Brisbane market continues to adjust to changing conditions and uncertainty.