Brisbane unit market records rise in sale
While house sales in Brisbane’s inner city skyrocketed in the past six months, the city’s unit market has also stepped into another phase of its cycle by recording an impressive rise in sales for both the inner city and fringe precincts according to a Colliers PRD Inner City Unit Report prepared by research analyst Alison Timchur.
Recording the high level of sales since December 2004, a hectic June 2007 quarter resulted in 312 units being sold with a total value of approximately $186m. The average price for each unit sold was around $596,000.
In her report, Timchur confirmed that South Brisbane continued to be the strong performing precinct for unit sales, capturing 118 of the total amount of units sold. This was followed closely by the west precinct where 80 units were sold, and the CBD where 76 units sold.
According to Timchur this is the second quarter where we have seen sales figures increase. She said these latest results seem to support market commentators who have predicted the end of the slump for inner city unit sales.
She believes this buyer resurgence back to inner city and fringe units can be attributed to a rise in investor confidence.
In some instances they have found that investors who sold their inner city property stock to pump funds into their superannuation funds are now turning back to the market they left, attracted by high rental yields and low vacancy rates.
For buyers looking at the buy or rent scenario, the report revealed that the median monthly rent for units in Brisbane is now hovering around $1367, while an average loan repayment is around $1700.
Timchur said it is worth considering the option of buying because it amounts to an increase of just $80 per week, or $333 per month.
Looking at who is buying what, Timchur said owner occupiers continue to be fixed on the luxury market while investors are dominating the lower end of the market and looking for bargain buys.
Unfortunately for Brisbane, unit stock in these inner precincts is running out and any new releases are selling out in fast than expected time frames.
Based on her finding more stock is needed to fulfil buyer demand. Currently we have only 973 units available for sale as at 30 June, which is 9.3 month of supply at today’s demand levels.
As for which type of stock is selling the most, the report confirmed that investors have a renewed interest in one bedroom apartments. For the June quarter, 94% of all sales in the Fortitude Valley area were for one or two bedroom units.
28-Aug-2007