The high life: 10k apartments bound for inner Brisbane in 2023
The number of apartments in Brisbane’s inner city has doubled in 10 years.
MORE than 10,000 new units are bound for Brisbane’s inner city in 2023 as the rise of apartment living gives way to a new way of life in the Queensland capital.
Families and households earning $200,000 or more are set to be the fastest growing segment of apartment occupiers over the next five years and the number of apartments within 5km of the CBD could double by the time the Olympic Games arrives in 2032, according to a new report.
There are 56 major apartment projects active across Brisbane’s inner city, according to Place Projects.
Nearly 84,000 apartments now exist across Brisbane’s inner city suburbs — twice as many as there were only 10 years ago — and Bruce Goddard, director of Place Projects, believes that could double again in the next decade.
“That’s seen a dramatic change to the inner area,” Mr Goddard said. “More than half of residential sales in the inner ring are apartments.
Place Projects has recorded 56 major apartment projects currently active across inner- Brisbane, but there is a stock shortage of larger, owner-occupier apartments.
An artist’s impression of an apartment in ‘The Mowbray’, an apartment project by Mosaic Property Group coming to East Brisbane.
“More than a third of people buying apartments earn over $200,000,” Mr Goddard said. “It’s now an acceptable alternative to a house, without the maintenance.
“The trend is for a large, three-bedroom apartment with at least two living areas and storage for the golf clubs and fishing gear.”
While there were 7200 apartment sales across inner-Brisbane over the past 12 months, according to Place, there are currently only 2350 apartments listed for sale.
An artist’s impression of Mosaic’s ‘The Patterson’ planned for 36 Sylvan Road, Toowong, which will have 63 luxury units.
“This rate of supply is very low, which is placing a floor under local apartment prices,” the report said.
As a result, the average asking price for an inner Brisbane apartment is up 13 per cent compared to a year ago to $1.15m.
The vacancy rate is just 0.9 per cent, with only some 400 properties available to rent, compared to five years ago, when there were more than 2500 properties available to rent across inner Brisbane.
A render of ‘The Manning’ apartment project in Milton by Mosaic Property Group. Image supplied.
Asking rents are up 23 per cent on this time last year and continue to rise around 5 per cent per quarter.
Mr Goddard said strong interstate migration and the housing shortage would continue to put pressure on the need for more apartments to be built — particularly build-to-rent projects.
Among the apartment projects set to come online in inner Brisbane next year is Mosaic Property Group’s latest development, The Manning, on Railway Terrace in Milton.
A render of the rooftop area of ‘The Lanes’ apartment project in West End by Pradella. Image supplied.
Construction has been brought forward for the project after a rush of sales to a mix of owner-occupiers and investors.
The $110m project features 113 two and three-bedroom apartments over 21 levels, with construction set to start early next year.
It is one of 10 residential projects set to be rolled out by Mosaic in 2023 across southeast Queensland, including ‘The Mowbray’ in East Brisbane (81 apartments) and ‘The Patterson’ in Toowong (66 apartments).
An artist’s impression of ‘Skye’ by Pikos, which will start construction soon in Kangaroo Point.
Across the river, construction has started on The Lanes in West End, which will feature 138 luxury apartments across three towers.
The Pradella development is now over 70 per cent sold and will include high-end resident amenities such as an outdoor cinema, a rooftop yoga lawn, a steam room and a mineral pool, exclusive off-leash dog park and more.
An artist’s impression of Consolidated Properties’ ‘Monarch’ project in Toowong.
Another apartment project in nearby Kangaroo Point is also 70 per cent sold and fast approaching $200m in sales.
Expats, empty nesters, and the Olympics are the main drivers behind sales in Skye by Pikos, which is scheduled to start construction this month in River Terrace.
With an average sale price of $3.7m, recent off-the-plan sales include two penthouses for $12.5m and $10.5m.
A render of Spyre Group’s development on the Toowong riverfront called ‘Arc’.
And in Toowong, Consolidated Properties is set to deliver 233 apartments in its ‘Monarch’ project on 600 Coronation Drive, while Spyre Group’s ‘Arc Residences’ will offer another 28 units on Coronation Drive.
Property analyst Terry Ryder of hotspotting.com.au said more buyers were opting for apartments in near-city locations where units cost less than half the price of local houses.
“In Brisbane, there continues to be good buyer demand for affordable apartments in near-city and middle ring suburbs,” Mr Ryder said.
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