Knight Frank Q2 Australian Residential Review

By: Inais Black: May 23, 2018, Updated: January 21, 2019

The Knight Frank Australian Residential Review for the second quarter of 2018 has just been released. Let’s take a look at it so we understand what’s happening in Brisbane and the Gold Coast.

Brisbane

Over the year ending March 2018, the median value for apartments in Brisbane fell by 5.5%. 4.3% of this reduction happened in the past quarter, with a resulting median value of $380,000. There was also a fall 25.8% fall in the volume of sales, which hit 10,790 for the apartment market over the same period. You can also see signs of buyers hesitancy elsewhere. The average days on the market for apartments was 146 days. A year earlier, it was 122 days.

Gross Rental Yield & Total Vacancy Greater Brisbane (Source: Knight Frank Research, APM, REIQ)

Gross Rental Yield & Total Vacancy Greater Brisbane (Source: Knight Frank Research, APM, REIQ)

However, there is some silver lining. Gross rental yields increased 20 base points to 5.10% for apartments over the March 2018 quarter. This was despite average rents decreasing 1.3%, to about $375 a week, for apartments over this period. This reflects the lower purchase price for apartments, as evidenced by the reduced median value. Total vacancy, for houses and apartments, was at 3.1% as of March 2018. This, when broken down, means 3.5% in the Inner Suburbs (0-5km from the CBD), 2.8% in the Middle Suburbs (5-20km) and 2.0% in the Outer Suburbs (20km+).

Building approvals in the year ending March 2018 totalled 11,802 apartments in Greater Brisbane. This was trending 11.6% lower for apartment approvals compared to a year earlier.

Gold Coast

The Gold Coast recorded that apartment values rose 1.4% over the year. 1.0% of that growth happened in the last quarter, and it resulted in a median apartment value of $424,000. The volume of sales dropped 19.8% to only 8,427 for the year. The average number of days on the market for apartments was 100 days. This was the same as the comparable period a year earlier.

Gross rental yields remained steady for apartments at 5.80% for apartments over the March 2018 quarter. Rents increased 5.0% for apartments over the year ending March 2018. Weekly median rents stood at $420 for apartments. Total vacancy was 1.1% as at March 2018 falling from 1.7% one year earlier.

You can download the full Knight Frank Research Report here

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