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ISCOVER
Staff Reporter
Investors are continuing to drive the inner Brisbane new apartment market, according to the latest research from Colliers International.
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The Colliers International Brisbane Apartment Research and Forecast Report indicates there are likely to be around 2,000 to 2,500 new apartments released for sale over the next 12 to 18 months, and most of this supply consists of one- and two-bedroom apartments targeted towards the investment market.
One-bedroom apartments are earmarked to make up 53 per cent of new stock, and two-bedroom units are earmarked to make up 43 per cent.
Andrew Roubicek, Colliers International Brisbane residential director, said in the current market the majority of new apartment buyers are investors, making up around 85 per cent of buyers.
“Investors are attracted to new apartment stock because it has the potential to achieve high gross rental yields of over seven per cent in some cases as a result of low vacancy and moderate rental growth,” he said.
“The best returns can be found in one- and two-bedroom apartments, and particularly in one-bedroom apartments, because they are at a lower price point.
“With interest rates falling and tax depreciation for new properties coming into play, these properties can actually quite often be cash flow neutral or positive, which is a huge drawcard for investors.”
Alex Beer, Colliers International research analyst, said rental returns for new apartments are expected to remain high in Brisbane and this means this type of stock will continue to be in demand from investors.
“According to the Real Estate Institute of Queensland, there was a slight decline in the residential vacancy rate over the September quarter and it now sits at 1.5 per cent,” he said.
“Meanwhile, figures from the Residential Tenancies Authority show one- and two-bedroom apartments saw rental growth of four per cent and two per cent respectively.”
