24th July 2018
A sharp decline in the completion of new apartment developments in South Brisbane will underpin prices and demand in the inner-city suburb, new independent research has found.
Leading property expert Urbis has forecast a dramatic fall in off-the-plan settlements from a predicted 1,451 apartments in 2018 to only 718 in 2019 and a mere 195 in 2020.
Urbis said South Brisbane apartment prices remained at a premium of 40 per cent above the median price for all Brisbane units, while recording 3.1 per cent annual price growth for the past three years.
Together with strong employment and population growth, the research found Brisbane’s relative affordability in comparison with Sydney and Melbourne would further bolster future demand in South Brisbane.
The Urbis research comes as off-the-plan settlements continue at the recently completed Ivy and Eve landmark development in South Brisbane.
Ivy and Eve is a 476-unit twin tower project on Merivale Street providing a range of one, two and three-bedroom luxury apartments with stunning views and resort-style recreational facilities. A limited selection of apartments is still available and priced from $399,000.
Urbis Director of Property Economics and Research Paul Riga said he expected there would be a drastic reduction in the number of off-the-plan apartment sales in South Brisbane after this year.
"There are only two new South Brisbane projects predicted to be launched by the end of 2018," Mr Riga said.
"Any other projects that have not entered presales are not expected to reach completion prior to 2020 so this slowdown in supply will allow the South Brisbane market to stabilise," he said.
Mr Riga said the median apartment price in South Brisbane increased 3.1 per cent per annum in the three years to September 2017 while the wider Brisbane apartment market grew by only 0.6 per cent over the same period.
"South Brisbane has experienced strong growth at 3.4 per cent per annum over the past 10 years, above the Brisbane average of 2.4 per cent," he said.
"Furthermore, based on the median sales price of $619,500 for apartments in South Brisbane, a premium of 40 per cent is being achieved when compared to the Brisbane LGA median.
"This highlights the value placed on South Brisbane given its lifestyle amenity and location, which will likely drive continued demand for apartments."
Developed by a Joint Venture Consortium of ASX-listed Abacus Property Group, local developer KPG Capital and Singapore’s leading property pioneer CDL, the Ivy and Eve towers have set a new benchmark for South Brisbane with an unprecedented range of resident amenities.
Abacus Property Group Development Director, John Bush, said the project’s enviable central location close to South Bank, the CBD, West End and Brisbane’s best cultural and entertainment precincts had been a big drawcard for residents.
Mr Bush said a clever podium level deck provided extensive and exclusive resident-only facilities, including a suspended luxury pool, heated spa, sun deck, gymnasium, yoga room and outdoor cinema.
"Residents also enjoy free use of a beach house, private dining and games room, BBQ areas with pizza oven, and a purpose built Japanese-style Teppanyaki bar," he said.