A new forecast from Moody’s Analytics shows Greater Brisbane apartment values to increase by 5.6% in 2020 after a 0.7% decline in 2019, reports Property Observer.
Between 2013 and 2016 apartment approvals outnumbered housing approvals by three to one, but recent alignment is predicted to spur growth.
We interject at this point with a warning that broad-brush averages can gloss over very different performances in local markets.
Ipswich and Moreton Bay North are expected to lead the growth and there are still pockets closer to Brisbane city that remain weaker. So do your own research.
“Apartment prices are expected to perform better than house prices for Brisbane (and Greater Brisbane) in the medium term,” Moody’s reports.
“We forecast home values to underperform throughout the forecast period, while apartment values are expected to reach a trough in 2018-2019 followed by a pronounced recovery in 2020.”
The forecast comes as unit rental prices remain firm, according to new data from Domain.
A typical Brisbane unit is renting on average for $380 per week, which is flat on the last quarter.
“Unit rentals have held up well in recent years even as a large supply of new apartments have been built,” Domain reports.