In late October, the Reserve Bank of Australia (RBA) nominated Brisbane, along with Melbourne as being at risk of oversupply, thanks to construction activity in inner-city suburbs.
“While the housing market remains a long way from oversupply nationwide, some geographic areas appear to be reaching that point, particularly the inner-city areas of Melbourne and Brisbane,” the RBA said at the time in a Financial Stability Review.
“Apartment approvals remain at very high levels in these areas, even though these rental markets already look soft; apartment prices have been little changed in the past year, rental vacancy rates are relatively high and growth in rents is subdued.”
But according to Steve Worrad, general manager of Raine & Horne Queensland, demand for apartments from both within and outside Brisbane is still evident.
“It's long been talked about that the stream of apartments coming into the Brisbane market would result in a situation of oversupply, but from what we're seeing, this isn't the case,” Worrad said.
“In fact, the smart money from both local buyers and interstate investors is snapping up quality apartments within a few kilometres of the Brisbane CBD,” he said.
Worrad also said recent figures from the Real Estate Institute of Queensland, which put the vacancy rate for Brisbane’s inner-city apartment market sits at 3.3%, shows there is also sufficient rental demand in the sector.
While the increase in stock means an increase in options for buyers, Raine & Horne selling agent Robyn Thomas said competition for prime dwellings is strong.
“Savvy buyers know quality when they see it, and that's why the best properties are continuing to attract strong interest,” Thomas said.
