Posted by Source: Position Property
on 17 March 2015
Never before has the Brisbane skyline changed as much as it will in the coming 5 years. There is an explosion of new residential apartments on the way and what this will do to the Brisbane real estate market is what everyone is questioning.
Some facts on what is happening:
-
Within a 2km radius of the CBD there are over 20,000 new apartments either under construction or with development approval
-
In this same radius (2km) there are a further 9,000 apartments seeking development approval
-
Within a 10km radius of the CBD, there are a further 20,000 new apartments either under construction or with development approval
-
The expectation is that all of the above will be built in the coming 5 years
-
This is an average of almost 10,000 new apartments per year for the next 5 tears. The Brisbane average over the last 10 years has been 2,000 new apartments per year
-
Population growth is steady
These key points emphasise the amount of product on its way to market. The most important point of all is that population is steadily growing. With employment opportunities growing in Queensland, as well as a steady population flow coming across the border from the southern states, we are hopeful that we will maintain a supply-demand equilibrium coming into this new phase.
Right now, apartments are selling well and it is the best the market has been in close to 5 years. This is due to there being limited product for sale, and strong buyer demand. As we progress later into this year and next year, the new apartments entering the market will increase seller competition. If buyer demand does not rise to meet this increased supply, there is potential for us to see an influence on time on market and pricing for apartment stock across the board.
