Brisbane is in no danger of being hit with an oversupply of new apartments according to an analysis of off the plan sales over the June quarter.
According to the Place Advisory report released this week, a total of 1,463 new apartments worth $814 million were sold in Brisbane over the June quarter.
Compared to the March quarter, sales of new apartments in Brisbane rose by 19%, while sales were 35% higher than the June 2014 quarter.
According to the report, one and two-bedroom apartments represented 42% and 56% of the market respectively during the June 2015 quarter, while the average sale price was $556,391.
Despite the jump in sales figures, talk of oversupply in Brisbane is unfounded.
“With more residential tower cranes dotting the Brisbane skyline than many people have ever seen before, supply concerns are constantly raised by buyers, developers and industry consultants,” Place Advisory report author Lachlan Walker said.
“Clearly that’s not the case at the rate that apartments are being delivered and sold,” Walker said.
According to the report, Brisbane currently has 2,402 off the plan apartments for sale, which based on the current sales figures represents around five months’ worth of supply.
“Given historical quarterly sales rates and current demand, the availability of Inner Brisbane apartments remains undersupplied,” Walker said.
“They sell out quickly, well before completion and increasingly there’s a very limited supply of finished new apartments.
“We predict this will remain the case into the near term.”
While supply may very not be outstripping demand in the Queensland capital, Rocket Property Group general manager Lindy Lear said not all of Brisbane’s suburbs represent equal value.
“We’d have to agree that there isn’t an oversupply of new apartments in Brisbane, but we would recommend people look outside the suburbs where the big developments of thousands of apartments are going up,” Lear said.
“We’re still pro buying apartments in Brisbane, but it’s the smaller boutique developments close to services and transport and that have lifestyle features as well, things like parks and other attractions.”