Design, Property research | 2 min read

Owner-occupier led apartment design to drive price growth

Peter Bell
Peter Bell
17/02/19

A shortfall of 15,500 apartments is predicted by 2023, with current supply absorption driven by a strengthening of the local economy, increasing population and a robust rental market, all of which will help inner Brisbane’s property market transition into a new growth cycle.

According to research by PRDnationwide, the Brisbane apartment market is on a “cusp of change”, with experts predicting a looming under-supply, following an extended period of construction.

A shortfall of 15,500 apartments is predicted by 2023, with current supply absorption driven by a strengthening of the local economy, increasing population and a robust rental market, all of which will help inner Brisbane’s property market transition into a new growth cycle.

Place Advisory Director Lachlan Walker said that developments that focus on delivering high quality product with owner-occupier appeal are set to provide the greatest returns for investors.

“In 12 months our current supply levels will be absorbed and we will be in the same sort of space as 2009, where there’s just nothing around and it will take years to catch that up again.”

“If negative gearing is removed from the landscape as well, then we’re in a situation where good quality product is going to be sold well,” he said.

“The cheaper investment product, which doesn’t really have a secondary market place outside of an investor, that’s going to struggle a bit, but that good solid stuff that investors buy that can be sold back to an owner- occupier in the future, that’s going to be the product that goes really well and continues to see price growth.’’

Originally published via realestate.com.au. Read the full article here.