In 2021, the price gap between houses and apartments in Brisbane continued widening to reach a record level. This was reflected by Brisbane’s median apartment price being $455,000, while the median house price was a record high of $915,000, twice as expensive as apartments.
Sales volume changes pace favouring apartments
It is noted that sales volume for houses decreased in Q4 with supply constraints. There were 7,292 sales in the 6-months to December 2021 while the 5-year rolling average of a 6-month sales period is 7,344. The apartment market nonetheless saw an impressive 20% increase on its 5-year average, a signal that demand is shifting in their favour for the year ahead.
The rise of apartment living among owner-occupiers is significant and a clear indicator of the increased number of families opting for the lifestyle advantages that apartments offer. Driving factors behind the trend include price advantage, a greater sense of security, accessibility as well as sporting & pool amenities.
The shift in the supply of apartment configurations over the last seven years is evident. In 2015, a particularly one-bedroom driven market, apartments accounted for 37% of off-the-plan sales and have since dropped to just 7% at the end of 2021.
Off-the-plan sales by configuration in Brisbane
Such a persistent increase of supply in two- and three-bedroom apartments will inevitably see increased apartment median values over time, with other variables treated relatively equally. In turn, this should eventually narrow the price gap between houses and apartments toward its long-term average.