“Contracting sales below the $500,000 price point can be attributed to the exacerbated impact increasing interest rates and the rising cost of living have had within this price sensitive market”
Brisbane unit product sold within the December 2010 half year has recorded an annual increase of 3.8% ($15,000), to register $415,000. Similarly to the house market, sales activity within all price brackets has contracted, although unit sales within the lower price points have absorbed the brunt of falling demand. This has resulted in median price displaying growth, whereas values have most likely softened as vendors are forced to discount prices in order to sell.
“The CBD Precinct consistently achieves less capital growth than fringe areas due to its location as the primary hub of Brisbane, however this region does yield higher rental returns”
Over the December 2010 half year period, the Brisbane CBD unit market has established a median price of $467,000 through an annual growth of 4.4% ($19,500). This represented the second highest growth across Brisbane throughout the December 2010 six months.
In order to establish the realised returns by vendors who sold their unit during the December 2010 period, PRDnationwide Research conducted a resale analysis. The Brisbane CBD Precinct consistently achieves less capital growth than fringe areas, due to its location as the primary hub of Brisbane in terms of amenity, employment and entertainment. The resale analysis has supported this, recording an average annual capital growth of 3.9% per annum. This product was held for an average period of just under five years.
The number of general apartment sales in the CBD Precinct has tightened significantly by 46% (167 sales) over the December 2010 half year period to register 197 sales. This reflects the second strongest drop in sales volumes for all precincts within the Brisbane LGA over the December 2010 period.