Sunday, February 16, 2020

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.

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