Mr Roubicek said rising construction costs have hit the new apartment market hard and that comparable established stock costs about 25 per cent less.
“There have been several examples of new developments achieving pre-sale [targets] only to have developers refund deposits and tear up contracts because building costs escalated to a point where it was financially unviable,” he said.
“As a consequence, developers who are looking to acquire new development sites are forced to increase their projected sales prices by around 20 per cent.
“Just 18 months ago a two-bedroom apartment in Brisbane might have sold off the plan for $9000 per square metre.
“But to build that apartment today the developer would need to achieve a sale price of $11,000 per square metre for the project to stack up.”
He said as result new stock is selling slower than established units, a trend that will play out through the rest of this year.
“The market is coming to terms with those newer prices and are seeing in the short-term better value for money in the established unit market.”
He said it is a similar scenario to when GST was introduced in 2000.
“When GST came into the market overnight the cost of housing went up 10 per cent and put more demand into the established market, where the prices of stock grew and the difference between new and second hand became narrower.”
Mr Roubicek said he believed the record price gap between houses and apartments will contract through the year.
“If you believe in history, if you believe in charts, and take a long-term view you would have to think that gap is going to narrow because everyone’s talking about affordability, everyone’s talking about interest rate movements,” he said.
“Natural forces will push what would have been a buyer of a detached home back into the unit market because of affordability.”
FAQs
Dr. Andrew Wilson's My Housing Market showed Brisbane house prices up 1.0% in September while Brisbane unit prices are down-0.2% over the month. Proptrack report Brisbane home prices lifted 0.27% in August after rising 0.37% in July 2023.
How much will Brisbane unit prices be in 2023? ›
The estimated median house price for 2023 is $719,669 and the median unit price is $503,200. According to QBE, despite the substantial growth in 2020/21 and 2021/22, Brisbane is expected to remain reasonably priced compared to Sydney and Melbourne.
Are house prices going down in Brisbane? ›
CoreLogic reports that Brisbane's dwelling values increased by 42.7% from trough to peak over the Covid period, but dwelling values have now fallen -9.4% from their peaks in June 2022, but as always the housing market in Brisbane is very fragmented.
Will Brisbane house prices drop in 2023? ›
However, there are also predictions that Brisbane's property prices could experience a decline of 12% in 2023, following a modest rise of 1% in 2022. According to the PropTrack Property Market Outlook February 2023 Report, the expected median house price in 2023 is $719,669, with the median unit price not specified.
Is there an oversupply of units in Brisbane? ›
This year alone, Brisbane has had 9,000 new apartments supplied, which is a massive 200% increase since 2015. As a result, Brisbane currently has a huge supply of new apartments, and is evidently oversupplied in popular inner-city suburbs such as Fortitude Valley, Newstead and West End.
Which Brisbane suburbs will boom in 2023? ›
10 best suburbs in Brisbane to invest in 2023
- Annerley (Units)
- Caboolture.
- Dakabin.
- Deception Bay.
- Eagleby.
- Eastern Heights.
- Edens Landing.
- Kangaroo Point (Units)
In recent years, there has been considerable discussion about the promising investment potential of Brisbane property. The decline in prices during 2022-2023 is widely viewed as an opportunity to purchase an investment property in Brisbane at a more affordable rate.
What will Brisbane house prices be in 10 years? ›
CoreLogic data shows that Brisbane's median property price has increased by 340% (5.1% per annum) over the past 30 years. Therefore, investors may assume that Brisbane house prices could reach $1.2 million by 2030.
What are the most overvalued suburbs in Brisbane? ›
The median house price in Booval is $506,300, which is 30% higher than the suburb's intrinsic value. Other overvalued suburbs in Brisbane include Caboolture South, Brassall, Kippa-Ring, Bellbird Park, Bellara, Waterford West, Lawnton, and Mount Warren.
Will house prices drop in Brisbane by 2024? ›
Right now, the Brisbane market is heading towards solid price growth in the latter part of 2023 and into 2024. PropTrack has Brisbane house prices up 3.75% in the year to August 2023, while CoreLogic records price rises for the year to date (the first eight months of 2023) as 4.0% for houses and 5.9% for units.
Where are the best suburbs to live in Brisbane?
- South Brisbane. ...
- Dutton Park. ...
- Spring Hill. ...
- Kangaroo Point. ...
- Corinda. ...
- Indooroopilly. ...
- Fortitude Valley. ...
- Petrie Terrace.
The bank has forecast the Brisbane market to rise 6 per cent this year, 4 per cent in 2024 and 3 per cent in 2025.
What is the forecast for Brisbane real estate in 2024? ›
Mr Kusher believes 2024 could see “a different housing market in Brisbane” with a moderate change in property prices. In his opinion this will translate to between 2 per cent lower and 1 per cent higher for the year. The PropTrack analyst warned that the outlook for next year is much less clear, however.
Where not to buy in Queensland? ›
Don't buy here: Queensland's property no-go zones revealed
- Mining towns like Moura have been flagged as no-go zones for property investors in a new report. ...
- A coal mine near Moura, which has been identified as one of the worst places to invest in property.
The short answer is yes. The average house price fell by 5.3% in the year to August 2023, according to the latest data from Nationwide. This is the most substantial annual drop in house prices since the aftermath of the financial crisis in 2009.
Will Brisbane apartments go up in value? ›
This could be great news for those looking to buy an apartment in Brisbane as prices are likely to increase significantly. Don't be surprised to see strong interest from international buyers in the lead-up to the Olympics. In summary, Brisbane apartment prices will remain strong in 2023 due to many compelling factors.
Is it a good time to sell a unit in Brisbane? ›
For most places, spring is the best season to sell your property. In Brisbane however, due to the good weather and lifestyle features available all year, it's possible to make a good sale all throughout the year. In spring, more buyers are likely to visit open homes, but this makes competition higher.
Are Brisbane apartment prices increasing? ›
Brisbane apartment prices climbed 3.1 per cent over the June quarter to a median of $487,370, the latest Domain House Price Report released on Thursday shows. It marks the steepest quarterly gain since December 2021, and takes the annual increase to 5.5 per cent.
Is Brisbane in a rental crisis? ›
Brisbane is in the grip of a “catastrophic” rental crisis, with skyrocketing rental prices, housing supply shortages, and increased demand. These factors are taking a toll on tenants and communities alike, as more people struggle to find affordable housing.
