Fears of apartment oversupply in Brisbane are abating as the city continues to pull off an admirable performance
Brisbane’s economy has recovered beautifully in recent years and now contributes to the stability of the housing market.
“The Queensland economy is going very well, so that’s a factor that will continue to be supportive of housing,” says Nerida Conisbee, chief economist at REA Group.
“The highest demand for buyer activity in Brisbane tends to be on the north side, and the Gold Coast has very high rental demand – that’s good if you’re looking to invest, because there’s going to be lots of renters.”
A rising star in the property market has been apartments. While there have been concerns about oversupply in the last few years, demand for quality dwellings seems to have been adequate to stave off fears of a glut of empty apartments in the Sunshine State.
“Oversupply is not something you need to worry about if you’re buying a good-quality apartment. The stuff that gets a bad reputation are the properties that were relatively cheaply developed and not necessarily in the best location or of the best quality,” Conisbee explains.
“We’re not seeing the same level of development taking place any more, so a lot of the problems associated with oversupply are passing through.” Conisbee points out that more buyers – particularly first home buyers – are favouring the apartment lifestyle because of its affordability and convenience.
“They can live in a part of a capital city at a relatively affordable price if they buy an apartment, but if they want to buy a house they’ll have to be quite far from town,” she says.
Regions reach new highs
Although the Commonwealth Games have ended, they have not put an end to the impressive runs of the Gold Coast and Sunshine Coast. A recent Queensland Market Monitor released by the Real Estate Institute of Queensland (REIQ) highlights that both areas remain highly positive.
“While other markets around the country are struggling in the face of tightened lending criteria and cooling investor appetite, the southeast corner of Queensland continues to deliver steady, sustainable growth,” says Antonia Mercorella, CEO of REIQ.
The annual median house price in the Gold Coast increased by 2.3% to $675,000, while the Sunshine Coast reported strong growth of 6.3% to $595,000.
SUBURB SPOTLIGHT
BUNGALOW: Unit market with incredible yields
Nestled within the Cairns region, the suburb of Bungalow is notable for its low dwelling values and remarkably high yields.
The median house price came in at just $328,954 following an increase of 4.9% over the year to December 2018. And although prices dropped by 3% in the unit market over the same period, units in Bungalow have one of the highest rental yields in the state, at a whopping 9.8%.
From Bungalow, there is easy access to the Bruce Highway from Mulgrave Street. This is one of the main thoroughfares that connect Cairns to the highway. Hartley Street forms Bungalow’s southern boundary.
While the suburb does not have many amenities, Bungalow is just 10 minutes from the Cairns CBD.
Accessibility: There is a link to the Bruce Highway, as well as to other pockets of Cairns
Yield: Bungalow’s unit market boasts a stunning 9.8% yield for landlords
