Saturday, June 17, 2017

Brisbane off-the-plan market "subdued"

Place Real Estate Agents issue a quarterly report as to Brisbane apartment sales.  It is worth studying.  See Place Projects website.

From their recent report for the March 2017 quarter:

As expected, the March 2017 quarter brought another period of subdued sales activity across Inner Brisbane’s off the plan apartment market as sales momentum continues to soften.

The Inner Brisbane apartment market saw just 272 unconditional transactions take place throughout the rst quarter of 2017, a substantial decline of 67% from the same period 12 months prior, which recorded 828 unconditional sales. Meanwhile, the weighted average sale price recovered over the past 12 month period, increasing by 5% from $602,415 in the March 2016 period to $629,963 in the March 2017 period.
  • Inner Brisbane’s off the plan apartment market recorded 272 unconditional transactions over the March quarter, the lowest level of sales since the June 2011 period. This re ects a 13.7% decline from the December 2016 quarter.
  • Just over $171.4 million worth of apartment sales were recorded throughout the quarter.
  • There are currently 67 projects being sold off the plan in Inner Brisbane, with just two projects reporting for the rst time during the quarter. These include Augustus Residences and The One, adding an additional 151 apartments to the market.
  • A weighted average sale price of $629,963 was recorded for
    the period, an increase of 5% from the corresponding period
    12 months prior. This is indicative of a slight change in the product mix across the market, resulting in higher sale prices.

  • Augustus Residences, located in Toowong, was the top performer for the quarter, recording 61 unconditional transactions. 
The Brisbane CBD saw very little activity during the March 2017 quarter, with just 16 unconditional transactions recorded for the period. With no new projects released throughout the quarter, the CBD continues to sell down current apartment stock.

A weighted average sale price of $668,750 was recorded for the three month period, re ecting a 3.8% decline from the previous quarter, indicating a slight increase in the level of investment stock that transacted during the period. Brisbane Skytower recorded the highest number of unconditional transactions across the CBD market during the March quarter, recording a total of 12 sales.

The majority of transactions that occurred within the precinct were in two bedroom con gurations, accounting for 88% of total sales. The remaining 12% of transactions for the period were in one bedroom configurations.

A total of 225 out of 1,498 apartments remain for sale across four projects in the CBD including The Midtown, 111 Quay Apartments, Skytower and Mary Lane. 

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