Brisbane Apartment Supply - Undersupplied?

Brisbane is predicted to be the first east coast city to experience an undersupply of apartments, having turned down earlier.  According to experts, Brisbane requires approximately 23,000 additional dwellings per annum to accommodate its growth.

In 2019 construction commenced on 2,100 apartments—a decrease of 3,000 on the 5,100 commencements recorded in 2018 and was the lowest number of commencements since 2010.

Apartment completions in Brisbane have fallen by almost half over the following two years, and in 2020 are on track to record the lowest level of completions since 2013.

https://theurbandeveloper.com/articles/impending-supply-shortage-by-2022

One real estate agent's reaction:  The agent said the impending undersupply of apartments signals a likely ‘step up’ in market values for second hand units.  There is excellent value-for-money in the CBD with established apartments in great locations. New and ‘off the plan’ units are already selling for 15-20% more than existing stock.

Luxury Apartment Supply

"The number of three-bedroom luxury apartments to be built in prime suburbs over the next three years is rising in Brisbane" according to the AFR (13 Feb 2020, p 34).

Luxury three bedroom apartments will make up 21% of new apartments built by 2022 "amid growing demand from downsizers and retirees."

Bulimda, Ascot and Hawthorne are areas which will are predicted to get the lion's share of these apartments.

Maybe the demand for 1 bedroom and student accommodation is falling in Brisbane, particularly with the sluggish student demand due to coronavirus.  That makes sense, because small badly designed one bedrooms have a limited market appeal.

I have seen good one bedrooms sold off the plan a few years back now selling for $100,000 less than the off the plan price.  Some developers have unsold stock that they have held for over a year.

Lotus Tower

Chinese developer R&F Property has finished building Lotus Tower at Kangaroo Point in Brisbane.   It was built without any pre-sales.  Unusually, the sales campaign was launched when the building was complete, and it is reported about 30 apartments have been sold.

This is not a river front building.  There are not many facilities within walking distance.

The complex has street side townhouses and 188 apartments over 20 levels.

I have not been inside the complex yet.  R&F is the same developer who built Brisbane 1 Towers at South Brisbane.  This development has three towers (one primarily for short term and hotel rentals).  In my view, the apartments there are small and expensive, of average quality, and have mainly been sold to Chinese investors.  Many appear to be still available for sale.

The One Brisbane

There are many buildings in Brisbane that have "one" in their name.

One of these is The One Residences.  This complex is on the old Courts site and includes in this development the W Hotel and an office building.  It is located on George St in Brisbane, and is above a new shopping mall, Brisbane Quarter, that is mostly empty.  Some restaurants here have already closed down.  There appear to be mostly Asian style restaurants remaining.

Queens Wharf Residences Brisbane

The marketing campaign for Queen's Wharf Residences in Brisbane (part of The Star casino development) has launched, with off-the-plan sales starting soon.  See https://qwresidences.com.au/

This will be a 64 level residential tower.  It is not riverfront, but on George Street.

Before buying, it is worth looking at this Kindle Book:  Buying An Apartment Off The Plan in Queensland