_Brisbane site sales volume review

Site Sales Volume

The volume of sales for development sites suitable for high-density apartments in Greater Brisbane was 36.2% higher in the year ending June 2019, with a total of $334.3 million.

Developer Nationalities

Analysing the disclosed purchasers of high-density developments sites by value, resulted with offshore buyers making up 18% of the mix in the 2018-19 year. The most prominent nationalities of offshore developers were from China (78.8%) and Singapore (9.2%).

Site Values

Across Greater Brisbane, the average sales rate for high-density residential sites was an indicative $40,100/per apartment at the end of June 2019, excluding CBD sites. This has decreased 0.5% compared to one year earlier.

In Brisbane’s inner suburbs, the range of site values extended from $32,500 to $75,000/per apartment with an indicative rate of $44,400/per apartment in June 2019. At this time, middle suburbs recorded $20,000 to $32,500/per apartment, with an indicative rate of $29,000. Site values in the outer suburbs ranged from $25,000 to $32,500/per apartment (indicative of $27,500/per apartment).

Apartment Pipeline

In mid-2019, there had been 10,800 new apartments added to Brisbane’s housing supply since the start of 2018, with a further 8,600 apartments currently under construction due by the end of 2022. There are a further 4,450 apartments with DA approval currently being marketed, also forecast to be delivered within this timeframe.

The inner suburbs saw 9,350 new apartments completed in 2018 and H1 2019 with a further 7,650 under construction and 3,500 being marketed due for completion by the end of 2022.

By mid-2019, the middle suburbs saw the number of new apartments grow by 1,300 since January 2018. By the end of 2022, this is forecast to grow by another 720 apartments at construction stage and another 880 being marketed. In the outer suburbs, 130 apartments completed in the eighteen months ending June 2019 and by the end of 2022, another 290 currently under construction or being marketed.

Bedroom Split

In Greater Brisbane, the distribution of bedrooms in apartments completed since 2015 have been weighted towards 1-bedrooms with 40% of the total share, followed by 2-bedrooms (39%), 3+ bedrooms (11%) and studios (10%). Currently under construction and due by the end of 2022, there is a trend towards a lesser share of studios (5%) and 1-bedrooms (34%) being built and more 2-bedrooms (39%) and 3+ bedrooms (22%).

Construction Costs

The cost of construction in Greater Brisbane increased by an estimated 3.5% in the year ending June 2019. In 2019, it’s estimated the cost to build an apartment to a medium standard (with a balcony) ranges from $2,910/sqm to $3,480/sqm (plus GST), according to Rawlinsons. 

New Apartment Values

Prices for new mainstream apartments in Greater Brisbane have increased from an indicative $7,300/sqm in June 2018 to $7,400/sqm in June 2019, to currently range between an average of $3,900 and $9,400/sqm (excludes prime and CBD projects). Greater Brisbane prices range from $6,400 to $9,400/sqm in the inner suburbs (indicative $8,400/sqm) as at June 2019. New apartments in the middle suburbs of Brisbane, were priced at an indicative $4,900/sqm (ranging from $4,800 to $5,200/sqm), whilst in the outer suburbs, an apartment could be purchased for an indicative $4,000/sqm (ranging from $3,900 to $5,050/sqm).

Offshore Buyers

Offshore buyers pay a duty surcharge for Queensland apartments. This equates to 7% of the purchase price, in addition to standard state-based stamp duties and FIRB application fees.