Growing demand for apartments in Brisbane
The latest report from BIS Shrapnel has highlighted the increasing strength of the apartment market in Brisbane. This could be good news for anyone interested in purchasing investment property in the near future, which could be a great opportunity to diversify and expand your real estate portfolio.
According to the Inner Brisbane Apartments 2013 to 2020 report, low vacancy and interest rates, attractive yields, and a strengthening Brisbane residential market have all contributed to a fantastic environment for investment.
Angie Zigomanis, senior project manager for BIS Shrapnel and the author of the report, highlighted the increasing attractiveness to investors, with the reduced interest rates and great prices contributing to strong rental yields for real estate in the city.
"Initial yields in many new apartment projects in Brisbane have been above five per cent for some time now. However, with many expecting that the Brisbane market has now bottomed out and the risk of further price declines is dissipating, the impetus to enter the market has increased," said Mr Zigomanis in a January 30 statement.
This could provide a great opportunity for property investment. Regardless of whether you're a first time buyer or a seasoned veteran, taking the opportunity to secure an investment apartment in Brisbane could be a great step forward in your portfolio.
Furthermore, the demand for these investment properties isn't simply limited to local buyers. With the increasing demand for apartments in Sydney and the potential oversupply of of properties in Melbourne, interstate investors are beginning to eye up the Brisbane market as well.
"In previous market upturns, interstate investors have accounted for up to 40 per cent of off-the-plan sales in inner Brisbane," said Mr Zigomanis.
"In particular, buyers from New South Wales are likely to find the value proposition for apartments in Brisbane more attractive compared to prices of apartments in inner Sydney after the recent rises that have occurred there."
This increasing demand will play a vital role in the overall development and sustainability of the region's apartment market in the coming years. The state's strength is expected to last for the next two years, with 2014/15 seeing an increase in the number of off the plan developments being constructed across Brisbane.