If you plan on buying brand-new apartments in Brisbane over the next two years, you should expect more choices, as the city would lead in terms of supply growth, according to CoreLogic’s analysis.
This could mean an oversupply of apartments in the city, but the probability of lower prices due to more units seems favourable amid record-high home prices.
CoreLogic said that first-time buyers would be among those who would benefit from a bigger supply of apartments in Brisbane. Developers would likely launch more than 11,000 additional units in 2019. A majority of these new properties would be located in the city’s inner suburbs.
The size of the apartments is also bigger than in other capital cities, such as Melbourne and Sydney. According to Riskwise Property Research, average sizes in Brisbane measure at 113 square metres compared to 94.9 square metres and 93.2 square metres in Melbourne and Sydney, respectively. The price per square metre is also significantly lower in the Queensland capital with $3,414.25, compared to $5,843.74 in Melbourne and $8,227.07 in Sydney.
Single-family homes are still more expensive, which is why having more apartments could be a boon for buyers. First-timers should have $673,000 to afford an average stand-alone house in Brisbane, according to the Real Estate Institute of Queensland.
The median home price in the city has increased by 30% in the last five years. While this may be bad news for buyers, it indicates a profit for real estate investors particularly in top-performing suburbs such as Carindale, Holland Park West, and Manly West.
Choosing among different apartment developments in Brisbane may be confusing with the projected increase in supply, but you could never go wrong if you buy from a development in an urban and cultural area. Where do you plan to buy a new apartment in Brisbane?