Is apartment a good investment in Brisbane?
Some experts say that Brisbane is a good market to invest in if you buy house and land, but not an apartment. They recommend holding off investing in Brisbane for the next two years as there are currently too many apartments being built and too many on the market, with over 15,000 still awaiting council approvals.
CoreLogic said house price growth is slowing faster than units and Mr Roubicek predicted that Brisbane apartment values will rise by “at least” another 15 per cent in the next 12 months.
Apartments are becoming increasingly popular in Australia and if you're careful with your investment selection and pay the right price they are very popular with renters and can pay dividends in the future when you go to sell.
Well... Brisbane was the strongest property market in 2021 exhibiting astonishing growth, with many locations experiencing 30+% house price growth. And as growth slowed in other parts of Australia, Brisbane's housing markets continued to perform strongly in the first half of 2022.
At the same time, Brisbane prices were expected to rise slightly this year by 1 per cent, before a 12 per cent drop in 2023. “Brisbane has been a strong performer in the housing market, so these declines would see prices end 2023 17 per cent higher than pre-COVID,” senior ANZ economist Felicity Emmett said.
The Brisbane apartment market shifted from undersupply to oversupply in the space of three months, due to the COVID-19 pandemic that has cut population growth and demand, according to valuation firm m3property.
- New Farm / Teneriffe. Total population: 12,534 & 5,341. ...
- Ascot. Total population: 5,787. ...
- Highgate Hill. Total population: 6,195. ...
- Wilston. Total population: 3,949. ...
- Ashgrove. Total population: 13,046. ...
- Taringa. Total population: 8,381. ...
- Tarragindi. Total population: 10,793. ...
- Holland Park.
ANZ has tipped house prices to jump by 9 per cent this year in Brisbane before falling by 4 per cent in 2023 as the post-pandemic boom cools. CBA now expects Brisbane house prices to increase by 9 per cent this year before plunging by 8 per cent in 2023 when the Reserve Bank ramps up interest rates.
And Brisbane is currently in the midst of a population boom. Net interstate migration to Queensland in the year to June 2021 (the most recent data available) reached 30,939. This is the largest annual increase since 2004 when Queensland had a net interstate migration of 35,498.
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Apartment vs plot: Major differences.
| Apartment | Plot |
|---|---|
| Limited scope for customisation | Freedom to build anything, as per choice |
Do apartments appreciate?
Houses appreciate in value over time. Apartments and townhouses appreciate in value over time. Investing in property is all about buying a property that will appreciate in value over time and deliver capital growth and good returns.
Slight fall in asking prices but still elevated
SQM Research data for the week ending 7 June revealed asking prices in Brisbane declined 0.6% for units over the week, but remain up 4.3% for houses. Over the month asking prices for units outpaced houses at 2.1% versus 1.9% respectively.
Units are typically less expensive than houses in the same neighborhood. So for first home buyers, units can be an inexpensive entry point into the property market. As for property investors, units can be a quick and cheaper way to diversify their investment portfolio.
