As expected, the March 2017 quarter brought another period of subdued sales activity across Inner Brisbane’s off the plan apartment market as sales momentum continues to soften.
The Inner Brisbane apartment market saw just 272 unconditional transactions take place throughout the first quarter of 2017, a substantial decline of 67% from the same period 12 months prior, which recorded 828 unconditional sales. Meanwhile, the weighted average sale price recovered over the past 12 month period, increasing by 5% from $602,415 in the March 2016 period to $629,963 in the March 2017 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 MARCH 2017 QUARTER
- Inner Brisbane’s off the plan apartment market recorded 272 unconditional transactions over the March quarter, the lowest level of sales since the June 2011 period. This reflects a 13.7% decline from the December 2016 quarter.
- Just over $171.4 million worth of apartment sales were recorded throughout the quarter.
- There are currently 67 projects being sold off the plan in Inner Brisbane, with just two projects reporting for the first time during the quarter. These include Augustus Residences and The One, adding an additional 151 apartments to the market.
- A weighted average sale price of $629,963 was recorded for the period, an increase of 5% from the corresponding period 12 months prior. This is indicative of a slight change in product mix across the market, resulting in higher sales prices.
- Augustus Residences, located in Toowong, was the top performer for the quarter, recording 61 unconditional transactions for the quarter.
- Other strong performers include Ella Apartments and Nero, both located in Newstead, which recorded 34 and 23 unconditional transactions respectively.
- Two bedroom apartments accounted for the majority of unconditional sales over the March 2017 quarter, representing 57% of sales. This was followed by one bedroom apartments, accounting for 31% of transactions. Three bedroom apartments totalled 9% of sales, whilst penthouse and sub penthouse transactions represented the remaining 3% of sales for the period.
- The majority of transactions that occurred during the March quarter were priced between $550,000 and $650,000, representing 36% of total transactions. The second most active price bracket was the $350,000 to $450,000 price bracket, accounting for 21% of sales for the period. This was closely followed by the $450,000 to $550,000 price bracket, totalling 19% of transactions, whilst a further 10% of sales for the period occurred in the $650,000 to $750,000 price bracket.
- The North of the River precinct saw the highest number of apartment transactions for the period, recording 169 unconditional sales. The South of the River precinct recorded a further 87 sales, whilst the remaining 16 transactions occurred in the CBD precinct.
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, these lower levels of transactions will continue in the short term. We expect that the remainder of 2017 will bring some challenging periods as the Brisbane market place continues to adjust to the next property cycle.