Following years of catching up with demand for new apartments in Brisbane, it is no surprise to find the Queensland capital now experiencing a rise in inner-city vacancies.
According to The Real Estate Institute of Queensland’s latest rental report, vacancy was 3.8% in the December quarter, up from 3.4% in the previous quarter, but that reflects a typical end of year downturn.
And if the trend of past years holds true, vacancies are expected to shrink in the March quarter to below that of the December figure.
Confidence is expected to remain very strong in 2016, with developments with a 10 kilometre radius of Brisbane performing exceedingly well according to CoreLogic RP Data.
Data from the Australian Bureau of Statistics reveals building approvals for 1388 apartments were given in December which capped off an incredible 2015 with 19,992 apartments approved during the year – an increase of 65.7% over the previous year and beating out Sydney in terms of growth.
And it’s not just the investors moving in. The ABS also reveals first home buyers in Queensland were active in November and December with 3290 loans approved during those two months. It marked a big 2015 for first home buyers with loan approvals in the first 11 months registering 1.4% higher than the same period in 2014.
Unit rents still rose marginally in the December quarter, but it is still good news for renters according to Domain Senior Economist Dr Andrew Wilson who says new apartments coming on stream will keep rents steady.
In fact renters may have their pick of the prestige new offerings as the majority of Brisbane’s inner-city apartments are being bought by investors.
Business is looking good in Brisbane too with the CBD performing above expectations, recording four successive quarters of net absorption with hope high for an equally buoyant 2016.
JLL Research statistics for the final quarter of 2015 reported 11,300sqm was leased in the December quarter. It is a particularly outstanding result when you consider a total of 26,660sqm was leased during the whole of 2015.
Overall house and unit prices in Brisbane have risen during 2015 by 4% for houses and 3.5% for units.
Median house prices in Brisbane is sitting at $519,288.