Brisbane’s Pending Real Estate Boom

In the past two years, there has been a dip in the yield of the average gross rent amount in Australia’s capital cities. The yield in the capital cities combined has gone from 4.3 percent to a shocking 3.6 percent.

Melbourne and Sydney especially feel the effects from this because these two cities are heading toward all-time record lows. Brisbane’s CBD is now more promising for investors. This is because we are at a point where Sydney is overpriced and no longer affordable.

The latest figure provided shows that Brisbane CBD apartment prices have climbed largely over the past twelve months and are now up an immense three percent. The month of March proved to be extremely profitable with a jump up by 1.8 percent.

The median price of CBD apartments is up by 2.1 percent which leaves them at a whopping $380,000 for the quarter. According to Mr Lawless, when the Reserve Bank deliberated over the latest interest rate settings, there would have been quite a challenge presenting itself thanks to this data.

Now that investors are well aware of the fact that a boom is soon on the horizon, everyone is beginning to question if Brisbane will begin to see a surplus in the CBD unit market. According to adviser of real estate Urbis, the answer is most certainly “no”.

The most recent reports from Urbis have indicated that inner Brisbane is reaching even newer heights in the apartment sales department. December and September were exceptionally impressive months with 1,500 and 1,400 sales respectively. These extreme numbers have not been seen since 2007, but it isn’t shocking to the market.

Mal Aikman, Urbis’ Economic and Market Research Director, claims that the future supply will not provide to be an issue because investors in the capital cities are beginning to see the value of properties in Brisbane.

Mr. Aikman so wisely made the following statement: “Looking forward, what we find is that in the first and second quarters of 2015 there are about 5000 apartments for sale. At the current rate of demand, that would equate to a sales rate of about 4000 apartments.

So demand is slightly behind, but not significantly, and we’re a long way of saying there’s an oversupply or a glut,”. Because there is so much knowledge of what will certainly be a real estate boom, now is the perfect time for investors in getting involved in a Brisbane CBD apartments.