OUR yearly review of the inner Brisbane apartment resale market has found an annual percentage gain of 6.5%, up from 5.7% during 2005/06.
The actual annual gain is $77,000 so far this financial year. Most apartments resold across inner
The average annual gain across all resales, regardless of year resold, was 5.9%. Our study includes 20 recently completed apartment buildings and in this review just over 750 resales were analysed.
The table below shows that it is the smaller and larger apartments that have seen the best return (in terms of annual percentage growth) on investment. Annual capital growth for one-bedroom apartments averaged 7.8% across our 20 sample projects, whilst three-bedroom product and penthouses achieved annual gains over ten percent.
Given the success of larger apartments at resale an interesting trend to watch will be amalgamations, whereby two or more inner city apartments are combined into one.
Often these new “super apartments” are larger than free-standing homes. This trend is quite popular in
Many of
There are 42 suburbs across inner
With this level of resale stock on offer, we don’t expect any great improvements in capital returns over the next couple of years. In fact annual gains might slip below the 6.5% achieved over the last twelve months during 2007/08.
The best performing apartment projects in terms of resales this year include Ikon(14.5% pa);
By Michael Matusik, Director of Matusik Property Insights.*
