City Beat September: 2024 to mark Brisbane's biggest unit boom in four decades
Units in Brisbane are on track to grow in value by over 20 per cent over 2024.
Last month, with data commissioned by property data analytics firm CoreLogic, Urban reported that Brisbane's unit market hadn't been this strong since 1988.
After CoreLogic's latest monthly update, it looks set to surpass the 16 per cent gains from 1988.
The August index from CoreLogic showed no slowing down for units, with values jumping another 1.7 per cent to now be 13.9 per cent up over the calendar year.
Based on the rolling quarter gains of five per cent, Brisbane should record a 20 per cent gain in the unit market in 2024, a remarkable turn of events that has seen it leapfrog Melbourne to become the second most expensive capital city unit market in the country.
The Brisbane median unit value is now $40,000 higher than Melbourne, despite only overtaking the Victorian capital earlier this year.
The unit market outstripped growth in the house market in August (+0.9 per cent) , a trend which is being seen across every capital city. Brisbane's median house value is now $966,000, up 8.5 per cent year to date.
Brisbane’s ongoing undersupply of new apartments and the city’s appeal as a lifestyle destination are major drivers of this surge, particularly as the city gears up for the 2032 Olympics.
Supply constraints remain a challenge, with increased construction costs and a shortage of available construction companies slowing the pace of new developments in market.
What happened in Brisbane’s off the plan apartment market in August?
There were just two new Brisbane apartment developments to hit Urban in August, two developments which cater for very different buyers.
The first images were unveiled for the $1.5 billion Teneriffe Banks, a suburb-shaping development on Skyring Terrace on the Brisbane River.
Teneriffe Banks by Kokoda Property will feature around 200 luxury apartments in the five-building development that will also incorporate Brisbane’s first Kimpton Hotel and a host of high-end amenities, including a rooftop bar with panoramic city views, an infinity pool, and extensive wellness facilities.
The only other development is Amado Windsor, by the family-run Carbone Developments.
Amado comprises just 30 large-scale apartments across a six-level building in the inner-north suburb.
Targeting the owner-occupier, Amado is a mix of two and three-bedroom apartments, and two large penthouses spread across the top level with the communal rooftop that offers unrivalled panoramic views of Brisbane City.
Amado has been designed by Brisbane locals Red Door Architecture who drew inspiration from the suburb's creeks and landscapes, as well as the surrounding vernacular houses.
The Granston St development represents the fifth apartment project in Windsor for Carbone.
Another significant development is set to prevail once the national developer Traders in Purple works out what it wants to do with the $63.5 million West End site they just bought from the now defunct Crown Group.
Crown had planned for four towers on the 1.25-hectare, 117 Victoria Street site.
Traders Director George Geagea said the size and location of the West End site presented a rare opportunity to create a remarkable lifestyle-focused destination just 4km from the Brisbane CBD.
“This is a spectacular site, one of the largest on the Brisbane riverfront to come to market in recent years,” Geagea said.
“We have long wanted to make our mark in Brisbane’s inner-city but we were prepared to wait until the right site came along."
Traders will be reducing the number of apartments, down from the approved 440.
