Brisbane’s property market has continued to break records and the owner-occupier apartment trend continues.
In the first quarter of 2022, Brisbane’s apartment and house market has maintained a very positive sentiment reflected by increased value. Compared to the same period in 2021, house prices have increased by a staggering 36% to reach a median price of $1,030,000, despite a 29% decrease in volume in 2022. This resulted in an impressive price growth and extended the remarkable value gap between houses and apartments, yet again. Brisbane apartments continue to present increasing affordability for those seeking an alternative to houses in the 5km inner ring. This market achieved 7.9% growth from 2021’s March quarter to reach a record median price of $480,000. This breaks the all-time-high of $473,000 in September 2015, which was the peak of the Brisbane’s apartment volume boom that ended in 2016.
It’s also important to note, that in the first quarter of 2022 apartments sales volume fell by just 7% in the March quarter compared to houses 29%. This has been driven by the affordability gap, the resurgence of interstate migration and the rise of owner-occupier buyers.
We acknowledge that there has been a stock shortage of larger, owner-occupier apartments across the inner ring. Given the exploding housing market in Brisbane, the cohort of young professionals and downsizer buyers are targeting these apartments as the budget friendly alternative. This has undoubtedly continued the configuration shift by astute developers to favour 3- and 4-bedroom apartments particularly those with older development approvals that had a greater mix of 1- and 2-bedroom types. A new generation of buyer who will upgrade from their current 1- or 2-bedroom apartment ownership to complement their growing family situation. This is also a new generation of owners who have only lived in apartments, wanting a lifestyle close to their place of work.
Blow outs of construction costs loom over the new apartment market. Both developers and construction companies are grappling with escalating prices and unreliable supply line of materials.