A look into Brisbane’s growing demand for inner city apartments – realestate.com.au

Engaged couple Sam Watts and Zac Nicholas bought a property in Newstead in early 2024 and fell in love with a suburb that would explode in popularity in the coming years.

“It really was a diamond in the rough, searching every weekend for four or five months and finding nothing until this one,” Nicholas said. “[Now,] it’s a 5 minute walk to pretty much everything.”

New data from analytics firm Informed Decisions has found suburbs like Newstead will see a big increase in urban density, with South East Queensland needing to house more people in fewer spaces.

With less greenfield development available for purchase in areas close to the city, attention is shifting to building larger apartment complexes instead of houses and smaller buildings, allowing more people to take advantage of downtown living.

Ms Watts and Mr Nicholas took advantage of this in early 2024 and bought their two-bedroom apartment for around $530,000.

“At the time we thought this was at the high end of what we wanted to achieve, but now, with hindsight, it was perfect,” Ms Watts said. ‘I think we borrowed an estimated €75,000 more than what we bought for.’

“We feel like we were very lucky with the time we bought because after that it is very difficult to get to market now.”

Less available land space in this hotspot near the city has led developers to focus more on high-rise projects, which can accommodate more residents in the same space.

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Since moving in, the couple had seen more construction high-rise developments be realized in the neighborhood – possibly at the expense of some of the greenery in the area.

“We have a few buildings nearby, and they are huge buildings, over 20 stories,” Ms. Watts said. “There are some apartments with a lot of greenery, but many do not. And we are always happier when we see those green spaces.”

Scarlett Leung, principal agent at Rissman Property Newstead, said while single-family homeowners still dominated the spaces where she worked, she was pleased to see her neighborhood seeing a broader group of buyers move in.

“I’m very happy with the transformation,” she said. “I grew up in Hong Kong, a very big city, and people can live in a small place with a productive and effective work-life balance.”

While the engaged couple appreciated seeing greenery in their neighborhood, they said they were happy to take over the trade for the convenience of the suburb. Photo: Liam Kidston

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More areas in Brisbane are likely to grow upwards rather than outwards, with a rising population and a tight housing market.

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“I understand some may not like the crowds, but it will also attract more business… it means more people can walk around and greet people, and create a sense of community.”

Although the couple plans to upgrade within the next five years once they start a family, they don’t plan to live far from the area, despite the growing density.

“The location itself is perfect for us,” said Mr Nicholas. “Even if we were talking about moving, I still think we would be in the Newstead-Teneriffe region just because of the proximity to all the essentials.”