With new apartment sales on the rise and prices at record levels, confidence in Queensland property remains strong. Unfortunately, due to a shortage of development projects buyers find it challenging to break into this sector of real estate investment.
Urbis’ latest report signals a mounting apartment shortage in Brisbane and Gold Coast. Their Q2 2024 Gold Coast and Brisbane New Apartment Essentials Summary highlights an urgent shortage in inner city supply; as demand outpaces supply by far. Furthermore, this data revealed that Brisbane saw its average weighted apartment price increase by 5.4% year on year to reach $2.083 million during June quarter – this increase comes on top of 5.4% year-over-year price increases across Brisbane itself!
This report indicates a dramatic decrease in available apartments on the market at the end of June quarter compared to pre-quarter low levels, when 3,010 units were listed for sale. Due to reduced supply, selling times have also increased; currently 33 days is required to sell one new unit.
Even as supply shortages persist, developers continue to push projects forward. Brisbane-based Spyre Group recently introduced The Wellington Collection by Bureau Proberts; it features two and three bedroom apartments as well as an exclusive rooftop oasis featuring heated infinity pool, dining area, lounge space and the Winter Den Sauna – with construction set to begin later this year and first residents arriving sometime early 2019.
Brisbane-based Salter Brothers’ proposal for the Mercure Brisbane Garden City Hotel at 18 Macgregor Street nears completion, as they prepare to demolish it and construct a 17-level Bates Smart building that will house 101 apartments. Construction should start later this year and be complete by 2023.
Mosaic Property Group will soon launch another Milton development, The Manning on Railway Terrace. Comprised of 113 two and three bedroom apartments over 21 levels, The Manning has drawn strong interest from owners as well as investors alike and has already generated much hype in southeast Queensland – this will be one of ten projects by Mosaic coming online over the coming years in areas like Yungaba and Toowong.
Iris Capital has entered the thriving Gold Coast development market with Pacific One at Garfield Terrace Northcliffe – their inaugural project outside Melbourne. Comprised of two towers each containing 333 apartments including sub-penthouse and penthouse apartments, Pacific One will offer something for everyone on its Gold Coast site.
The Gold Coast has come under scrutiny for its rising property prices, and several government interventions are designed to increase housing affordability. These include Distinctly Queensland design standards which will expedite planning decisions while prioritising affordable housing units and encouraging infill development; in addition, a State-Faciliated Development team was established by the state government for quicker approvals and to address infrastructure charges more efficiently.
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