Brisbane’s riverfront apartment market takes off
Apartments on Brisbane’s riverfront are outperforming other inner-city markets and have achieved a higher rate of capital growth over the past 12 months than their non-riverfront counterparts, according to a new report.
The Place Advisory 2014 Riverfront Apartment Report examines all historical apartment sales that have occurred within the inner-five-kilometre radius of Brisbane’s CBD in the past year. According to Place Advisory, the report shows riverfront suburbs have been performing better than those without river frontage.
Over the six-month period ending in June 2014, the riverfront market achieved an average sale price of $915,326 – 92 per cent higher than the non-riverfront markert which recorded an annual sale price of $477,675, the report said.
Riverfront resales also outperformed over the past 12 months, achieving capital growth of 5.2 per cent on average, compared to 3.6 per cent for non-riverfront apartment resales.
Looking back, riverfront apartments also achieved the highest level of capital growth in 2013, 2012 and 2009, while those without a river frontage outperformed in 2010 and 2011, according to the report.
Place Advisory noted that in 2011, when riverfront apartments saw just one per cent capital growth, environmental factors were largely to blame – namely the Queensland floods.
Director of Place Advisory, Lachlan Walker, said there were clear reasons why this market was heading upwards.
“Liveability and lifestyle factors are major contributors to underlying demand and price growth. This is demonstrated quite clearly when analysing the impact the Brisbane River has on the apartment market,” Mr Walker said.
Mr Walker also said riverfront apartments had become a “status symbol” in Brisbane, which was increasing demand.
“It is the demand and relatively low, overall supply of apartments with river frontage which is driving the capital growth and high sale prices.”
During the most recent six-month sales period to June 2014, the most active price point was the $500,000 to $749,000 price bracket, Place Advisory said. Just 11 apartment transactions (or eight per cent of the total riverfront apartment market) were recorded in the $2,000,000-plus price bracket.
“There has been a clear shift over the last few years across the whole of Brisbane in terms of the most active price points and the riverfront market is no different,” Mr Walker added.
“Transactions are still occurring, just at lower prices than were seen during the previous phase of the market cycle.”