Brisbane’s Luxury Property Market
While much attention has been focused on the residential property markets in Sydney and Melbourne, it is generally agreed that the southern capitals’ markets are starting to cool.
The reality is Australia’s property market moves in cycles, from peak to trough. Australia’s largest market Sydney has seen over rapid growth over the past few years, and we have also seen values in Sydney start coming down from their peak in July 2017.
This is nothing new. Put simply, the property cycle is determined by supply and demand. The market slows as supply overtakes demand, the excess stock is absorbed into the market, and the market rises as demand overtakes supply.
It is important to remember that Australia doesn’t have one single property market. Each state, each city, and even each area has its own stage within the property cycle.
The property market in Brisbane has a positive outlook thanks to several factors, including the major projects currently underway around Brisbane which has started creating jobs besides giving the economy some momentum. When complete, these projects will also improve the lifestyle in Brisbane.
One such project is the second runway coming up at Brisbane Airport at a cost of $1.3billion. The project, which is scheduled to be completed by 2020, will significantly increase flight capacity. The runway is expected to boost the economy with both Tourism and increasing trade and business connections with South-East Asia.
Coupled with the employment opportunities and boost to infrastructure and lifestyle amenities, is the affordability of property in Brisbane. When we consider that Brisbane’s median apartment price is circa 50 percent of Sydney’s median price, it’s not surprising that a shift to the Sunshine State provides a tempting proposition to interstate and overseas migration.
Despite a softening in the Brisbane apartment market, the luxury property market has remained relatively stable. A few factors are contributing to this, in the first instance, Brisbane’s luxury apartment market caters for owner-occupiers and long-term residents.
The luxury portion of the apartment market has been long under-represented, resulting in built-up demand for these large, high-end apartments in proximity to key lifestyle amenity, even as pockets of the Brisbane market softened.
This demand for luxury property in key locations is not only coming from those migrating to Brisbane. Owner-occupiers in the form of Downsizers have become a major force in Brisbane’s real estate market. Many empty-nesters have looked to trade their existing home (and the maintenance involved), to a low-maintenance option, near amenities that will accommodate better a lifestyle balance. Downsizing doesn’t mean downgrading.
As the market begins to recover, we expect the high-end market to continue to be tightly held. These larger-than-average apartments feature modern conveniences, a high calibre of finish, storage options, and premium locations – a unique offering that will continue to hold their appeal both now and into the future.
At Which Property we specialise in tailored property solutions for investors and owner-occupiers alike. We can help you understand your goals and find property solutions suited to you.
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