City Apartments Blog
Inner City apartment at five year high.
editor
25 Jan 11
NEW apartment sales in Brisbane’s “inner-ring” are at a five-year high with an 80 per cent increase last year alone, according to a report.
The Colliers International Brisbane Apartment Report for the December 2010 quarter shows 1433 sales for 2010 the highest since 2005, and well above the long-term average.
Colliers International research manager Josh Daly said investors accounted for up to 90 per cent of all inner-city property sales.
“Recently, owner-occupiers have been largely absent from the market due in part to expectations of flat prices in the short to medium term, higher borrowing costs and the removal of fiscal stimulus measures,” Mr Daly said.
Brisbane’s inner north accounted for the majority of sales with 172, followed by the CBD with 94 and the inner-south with 55.
“The weighted average price of unconditional sales for inner Brisbane during the December 2010 quarter was $556,200, a moderate increase from the previous quarter,” he said.
“The demand for new apartments in inner Brisbane is currently well above trend levels and is rising.”
But it’s not all good news. High levels of available supply will limit any significant appreciation in prices or growth in rental values in the short term, he said.
REIQ acting CEO Ian Murray said the Colliers report reflected the CBD’s strong investor appeal.
“The inner city continues to be the most sought after for buyers of units in the Brisbane region,” Mr Murray said.
“And there are signs that investors and first home buyers are becoming more active in the property market generally.
“Over the December quarter last year, REIQ figures show that Brisbane City recorded 76 preliminary sales of new and established units, New Farm recorded 48 preliminary unit sales, which was up on the September quarter, and Fortitude Valley recorded 33 preliminary unit sales.
“Kangaroo Point and Spring Hill recorded 32 preliminary unit sales each over the quarter.”
