BRISBANE INNER-CITY APARTMENTS: BUCKING THE TREND WITH RISING SALES IN 2024

 

 

 

If you’re thinking everyone seems to be talking about the Brisbane property market right now, you’d be right, because they absolutely are! What may come as a surprise however, given we’ve been hearing for years that apartments are on their way down the ladder in popularity, is that quite the opposite is occurring. Houses are still a hot commodity in 2024, but Brisbane’s inner-city apartment sales are quickly stealing the spotlight. So why the change?

Strong Demand Meets Limited Supply


With a population of (estimated) 2,536,449 in 2024, Brisbane has grown 21% in population over the past ten years and is home to one third of all Queensland residents, establishing itself as one of the fastest-growing capital cities in Australia. Showing no signs of slowing down, this constant influx of residents, particularly young professionals and downsizers, is driving demand for convenient and low-maintenance living options with Brisbane’s apartment market seeing gains that were double those of its house market in April 2024 alone. Inner-city apartments perfectly fit the bill, offering proximity to jobs, amenities and public transport.

Brisbane’s rental market is brawny and aggressive, with vacancy rates for apartments falling below 1%. As a result, the ease of finding tenants and the potential for considerable rental income are driving investor interest in the apartment market.

 

On the other hand, new apartment construction has slowed down in recent years, inadvertently imposing pressure on pre-existing dwellings. This, combined with a rising demand, is creating a competitive market for inner-city apartments.

Affordability: House vs. Apartment

With house prices experiencing significant growth, people are turning to apartments for a more affordable entry point in addition to a vibrant inner-city lifestyle. For instance, Your Investment Property recently reported that the median property price for a unit in Kangaroo Point is $639,250, with an annual capital gain of 18.38%. While the median property price for a house is $1,200,000 with an annual capital gain of -11.11%. This comparison makes apartments an attractive option for young professionals, couples and downsizers seeking a balance between affordability and access to the city’s energy and amenities. With lower maintenance requirements and more affordable mortgage payments, Brisbane’s inner-city apartments offer a dynamic and convenient living environment for those who prefer an urban lifestyle. 

Seeking a Lifestyle Change: The New Australian Dream

While the quarter-acre block with a hills hoist might hold nostalgia for some, younger demographics are increasingly prioritising a different kind of lifestyle. With a rise in environmental and sustainability awareness, less becomes more. As walkable neighborhoods replace sprawling suburbs, the convenience of popping out for coffee or groceries on foot or e-scooter hold greater value than mowing a lawn. Entertainment options become readily accessible, with trendy restaurants, bars, and cultural venues all within a short distance. The dynamic pulse of a boisterous urban environment is a hub for those who crave a colourful atmosphere and a sense of constant connection. Inner-city Brisbane offers all of this in abundance, with its well-developed network of pedestrian walkways, its lively entertainment scene, and its constant buzz of activity. This shift in priorities suggests that the Australian dream is not disappearing, but rather transforming to reflect the values and aspirations of a new generation.

 

But it’s not just Australians who are on the pursuit of inner-city settlement. With Australia facing a cost-of-living crisis, young Japanese people are finding a financial advantage to moving here. The average yearly salary in Japan sits at around 6,200,000 JPY ($58,860.84 AUD), compared to the average salary in Brisbane being $74,466 per annum. So it’s no wonder this discrepancy, a decades-long issue with stagnant wages, coupled with a recent recession are driving a surge in Japanese workers seeking new opportunities in our beautiful country.

What to Expect For the Rest of 2024

The Brisbane inner-city apartment market is expected to see continued strength in performance in 2024. Here’s a breakdown of what you might expect:

Brisbane’s population is projected to keep growing, putting pressure on housing options, particularly around the inner city. Apartments, with their affordability and prime locations, are likely to be in high demand.

Experts predict price increases for Brisbane apartments in 2024, with estimates ranging from 3% to 10%. The actual growth rate will depend on factors like interest rates and the overall economic climate.

Brisbane’s rental market is predicted to stay tight. This makes apartments an attractive investment for those seeking steady rental income.

While investor interest remains strong, there might be a trend towards owner-occupiers, particularly younger buyers seeking to enter the property market in desirable inner-city locations.

Rising interest rates could dampen buyer activity and potentially slow price growth, but it’s unlikely in the inner city due to the practicalities of supply/demand. Additionally, an increased supply of new apartment buildings could impact prices in some areas like Newstead and South Brisbane.

Considering a Home in Inner-City Brisbane?

Whether you need a change of scenery, seek the convenience of inner city living, or perhaps work commitments are prompting a relocation, I can help. With over 27 years in real estate, I offer a bespoke service as a leading independent buyer’s agency within the luxury property market and can ease the burden on what is often a stressful time when moving house. If you’re contemplating an inner-city move, I can source off-market homes within Ascot, Teneriffe, New Farm and Paddington, amongst others.

To engage in my services, please schedule a booking via my website.

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