Brisbane’s apartment market is experiencing a remarkable surge, with sales outpacing those of houses as young buyers flock to the city. The ongoing infrastructure investments have made Brisbane an attractive option, leading to a staggering 94% increase in apartment prices since March 2020, according to Angus Moore, executive editor of economics at REA Group.
The city’s unique lifestyle offerings and strategic upgrades have transformed it into a hotspot. Detached house prices have also seen significant growth, rising nearly 90% during the same period. Moore attributes this rapid escalation to increased interstate migration to southeast Queensland, particularly during the COVID-19 pandemic.
“While Queensland has always seen more people moving in than out, interstate migration was particularly strong during Covid, which was a factor in driving home prices,” Moore stated. Brisbane’s relatively affordable property market compared to Sydney and Melbourne was initially a draw for buyers, but with prices now soaring, that affordability narrative is changing.
Demand continues to outstrip supply, particularly in the inner and middle-ring suburbs of Brisbane. Larger owner-occupier units in lifestyle-centric areas are being rapidly acquired by young buyers and downsizers alike. For instance, a one-bedroom, one-bathroom apartment on Queen Street is currently listed at AUD 885,000, with rental assessments suggesting potential earnings of AUD 900 to AUD 950 per week. Additionally, a two-bedroom apartment in the Universal Apartments complex on Merivale Street is available for offers over AUD 850,000.
Brisbane real estate agent KC Yeung from K&S Property Group has achieved a personal milestone with 90 individual property sales in the past financial year. Yeung credits this surge in apartment sales to a shift in buyer preferences, as younger demographics seek affordability and lifestyle benefits.
“Earlier in my career, apartments weren’t the hot ticket item, overlooked in favour of a house. Now, they’re under contract within a day,” Yeung remarked. He noted that state government incentives, including stamp duty exemptions and shared equity schemes, are further stimulating market interest, particularly with the upcoming 2032 Olympic Games anticipated to drive prices even higher.
Properties that offer quality finishes, natural light, and functional spaces are highly desirable. Yeung highlighted a diverse buyer pool that includes first home buyers, downsizers, local investors, and those relocating from interstate or overseas. “Well-presented apartments with realistic pricing often sell at or above the asking price,” he explained.
Looking ahead, the Brisbane apartment market appears poised for sustained growth, especially with potential interest rate cuts expected in the near future. Historical patterns suggest that the lead-up to major events like the Olympic Games typically results in increased property values. For example, the development boom surrounding the 2000 Olympic Games in Sydney significantly impacted housing prices as new builds were constructed to accommodate the influx of visitors and athletes.
As the market continues to heat up, Yeung advises potential buyers to conduct thorough research on recent sales in their desired areas. Understanding specific building characteristics that add value, such as views and parking, can make a significant difference in the decision-making process.
“Get finance pre-approved so you’re ready to move quickly. If you’re serious about a property, make a strong and clear offer early,” he urged. Flexibility on settlement dates or other conditions can also enhance the attractiveness of an offer, even if it is not the highest bid.
The Brisbane apartment market has transformed significantly, drawing various buyers eager to capitalize on the current momentum. As the city prepares for the future, the potential for continued growth creates a compelling landscape for both investors and residents alike.
