Apartments and Townhouses

3.3

Apartments and Townhouses

Brisbane

The Brisbane apartment market has mirrored trends in the broader Brisbane residential market in recent months and continues to improve. Brisbane unit prices are up over the year although the rate of price growth is well below that of houses. Off-theplan apartment sale volumes have also risen and remain above recent lows. The continued divergence between house and apartment prices has increased the relative affordability of apartments and should help to underpin new apartment sales over the short to medium term.

Apartment sales continues to be dominated by two bedroom stock followed by 3 bedroom stock. Around a third of all sales are in the $650,000 to $750,000 range. Premium apartments, priced over $900,0000, are increasingly popular and accounted for around one in five sales in the previous quarter.

Higher construction costs continue to flow through into higher sales prices. Rawlinsons reports that, over the first quarter of 2021, prices for construction materials increased across all categories.

Increase in Brisbane Material Costs

LVL, LAMINATED BEAMS

15%

MESH REINFORCEMENT

10%

ROOFING/PURLINS

10%

CONCRETE

$10/CUM

Gold Coast

Gold Coast apartment market conditions continued to improve in the second half of 2021.

The apartment market is experiencing increasing rents, very low vacancy rates and strong demand from both owner occupiers and investors.

The reopening of interstate borders will be an important boost to an already strengthening Gold Coast apartment market.

The Gold Coast is expected to see increased demand for apartments and other dwellings, once interstate travel restrictions are eased, placing further pressure on the limited supply of new apartments.

TIMBER FRAMING

15%

BAR REINFORCEMENT

$150/T

STRUCTURAL STEEL

10%