Posted on July 26th, 2024

Why Brisbane Apartments Are a Smart Investment Choice

Brisbane boasts the fastest-growing population in Australia, with a remarkable 21% increase over the past decade. According to the Brisbane Economic Development Agency, the city not only outpaced Melbourne, Sydney, and Perth in population growth but also grew significantly faster than the likes of Hong Kong and Singapore.

This surge has fueled a strong demand for residential construction. Yet, according to Federal Budget population projections, a shortfall of at least 31, 045 homes is expected over the next three years.

Future population pressures and the existing housing shortfall position the Brisbane apartment market as a prime opportunity for investors.

Brisbane apartment market

Brisbane’s apartment market continues its upward momentum in 2024, with increases in sales, price growth, and rental yields.

CoreLogic has Brisbane’s median apartment price currently sitting at $622,567. And the fact this figure has increased by 18.8% over the past year makes Brisbane the second best-performing capital after Perth. In comparison, Brisbane house prices have risen by 15.2% over the same period.

Unlike other property markets, Brisbane’s housing values remained resilient during the pandemic. This stability is driven by steady growth in Queensland’s economy.

By 2041, Brisbane’s economy is projected to surge by 68%, reaching $275 billion. This growth will be fueled by hosting the 2032 Olympics, South-East Queensland’s continuing appeal as a top tourist destination, as well as the state’s robust presence in key sectors such as mining, agriculture, and education. All these factors help build a strong foundation for Brisbane’s housing market to continue its upward for the foreseeable future.

How much does it cost to buy an apartment in Brisbane?

While the median apartment price in Brisbane is currently $622,567, it’s crucial to note that the Brisbane apartment market is actually comprised of several distinct markets with varying prices.

Looking at the most recent market data from PropTrack, we can see that the sought-after inner-city suburbs of New Farm and Teneriffe have a median apartment price of $792,500 and $825,000 respectively. In contrast, the more affordable southern suburb of Moorooka has a median apartment price of $545,000.

Brisbane’s affordability compared to other major Australian cities is a significant drawcard for investors. Compared to Sydney, where the median apartment price is $855,468, investing in an apartment in Brisbane can be significantly more accessible for many buyers.

Brisbane’s housing market has seen a significant rise in the past few years, with prices growing more than 61% since the onset of COVID-19.

While this remarkable growth has pushed the city’s median home value higher than Melbourne, Brisbane remains an attractive and affordable option for property investors. With a strong job market, lower cost of living, and growing population, Brisbane has become a top choice for those looking to invest in the Australian housing market.

Will the Brisbane apartments market continue to grow?

Given the strong population growth predicted for Brisbane as well as the ongoing housing shortfall, the Brisbane apartment market is well-positioned for continued growth. These factors suggest a sustained upward trajectory in both property values and rental yields

According to new data from PropTrack, the median rent price for Brisbane apartments has risen to $600, marking a 9.1% increase since March 2023. Brisbane’s very low vacancy rate of just 0.9% and its stable economy, and affordable property prices helps ensure the city will continue to be a smart choice for investors.

In addition, the city’s strong infrastructure development and revitalization projects, such as the Brisbane Metro and Queen’s Wharf precinct, will further enhance Brisbane’s appeal to both investors and residents. These developments are expected to create thousands of jobs and boost the local economy, leading to increased demand for rental properties.

High-performing Brisbane suburbs for apartments

Thanks to PropTrack, we can tell you which Brisbane suburbs have the highest rental yields, as well as those with the strongest capital growth. Here are some of the top performers:

Holland Park

Located just 6 kilometers from the Brisbane CBD, Holland Park offers a mix of affordability and convenience. Up 4.9%, the suburb has seen a significant increase in property values over the past year, with a median unit price of $590,000. Holland Park also boasts a high rental yield of 4.9% and the average rent for apartments is $510 per week, making it an attractive option for investors looking for strong rental returns.

Ashgrove

Situated just 4 kilometers from the city center, Ashgrove has seen a 9.2% growth in property values over the past year, with a median unit price of $670,000. The suburb also offers a high rental yield of 4.7%, and the average rent for apartments is $540 per week. Ashgrove’s close proximity to the CBD and its leafy, family-friendly atmosphere make it an appealing choice for both investors and residents.

Ascot

Ascot has become a sought-after suburb for apartment living. With a median unit price of $632,500, the price of units in this suburb has grown by 12.4% over the past year, making it one of the top-performing suburbs in Brisbane. The rental yield for apartments in Ascot is at a solid 5%, with an average rent of $550 per week.

Are Brisbane apartments a good investment?

Set to host the Olympics in eight years’ time, Brisbane is Australia’s fastest growing city for good reason. Its strong economy, booming job market, and attractive lifestyle make it a desirable place to live and invest in property. With the growth of Brisbane’s population, there is a high demand for housing, particularly apartments.

As property prices continue to rise in the Queensland capital, more individuals will be drawn to apartment living as a more affordable option. This creates a strong demand for rental properties, providing attractive opportunities for investors to secure steady rental returns.

With a projected shortfall of 31,045 houses over the next three years in Brisbane, now is the time to invest in apartments. Getting in early before the demand for housing increases further can lead to significant capital growth in the long term.

Summary

Before you enter the Brisbane apartment market, it is important to do your due diligence. Research the different suburbs, property developments, and government incentives available to you to ensure your investment is a successful one.

At Ironfish, we specialise in equipping our investors with the knowledge and tools to make informed property investment decisions. Our 2024 My Market Brisbane Update offers valuable insights and analysis into the Brisbane property market, helping you to make smart investment decisions for a secure financial future. Contact us today to learn more.

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