Brisbane’s apartment market completes full cycle from oversupply to boom – realestate.com.au

Property experts say a Fortitude Valley apartment that has doubled in value in just three years marks the end of Brisbane’s apartment market nightmare.

The one-bedroom home at 809/8 Church St was purchased in December 2022 for $301,000 and sold this month through Michael Kafantaris of Place New Farm for $600,000.

513/8 Church Street, Fortitude Valley recently sold for $582,000.

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Place New Farm’s Michael Kafantaris says supply is tight, vacancy rates are low and the psychology of Brisbane’s apartment market has changed.

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Mr Kafantaris said the result reflected a structural reset rather than speculation.

“This is the apartment cycle at one address,” he said.

“Between 2014 and 2018, Brisbane delivered significant inner city supply.

“Deliveries exceeded demand, investor confidence weakened and prices softened.”

The apartment on Kerkstraat followed that path.

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2003/107 Alfred St, Fortitude Valley recently sold for $575,000.

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It sold for $386,460 during the 2011 developer boom, before dropping to $242,000 in 2018.

level of oversupply.

Values ​​then stabilized before sharply accelerating in the current cycle.

“That period created hesitation around units,” Michael said.

“Buyers avoided apartments for years.

“Now supply is tight, vacancy rates are low and psychology has changed.”

513/8 Church Street, Fortitude Valley recently sold for $582,000.

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He said the pace of price growth reflects years of delayed catch-up.

“For much of the past decade, apartments have lagged behind houses in terms of capital growth,” he says.

“The ten-year doubling rule did not apply to units during the oversupply years.

“What we’re seeing now is slowed growth happening in a compressed time frame.”

He said increased competition from first home buyers and investors, combined with rising replacement costs, is supporting established inner-ring stocks.

2003/107 Alfred St, Fortitude Valley recently sold for $575,000.

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Damian Hackett of Place Advisory said the equation between supply and demand was inverse.

“During the previous cycle, new deliveries exceeded population-driven demand,” says Damian.

“Now, population growth in South East Queensland remains strong, but the development pipeline is smaller than it was a decade ago.”

809/8 Church Street, Fortitude Valley sold for $600,000.

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K&S Property Group co-founder KC Yeung said strong interstate and overseas migration, combined with a shortage of new housing, was expected to make Brisbane rental demand high, vacancy rates low and yields high.

“Brisbane is transforming from a domestic lifestyle city to an international destination city, and that is fundamentally changing the real estate market,” Yeung said.

“The fact that we are receiving so many new residents means that demand for rental properties will remain high as people almost always prefer to rent before buying while they get to know the area.

“For buyers, this creates strong long-term fundamentals, while sellers see increased competition from both local and interstate buyers.”