JLL: Brisbane Apartment Prices Ready to Grow

We have been saying for some time now that the Brisbane market is ripe for price appreciation (check out this analysis from Sept 2019). It was pleasing to see JLL Advisory released a report today that similarly concurs that Brisbane is on the path to a strong recover in new apartment sales and resulting prices.

This report is an excellent read and I would encourage anyone considering investing into the Brisbane market to read it. It gives a very good overview of the supply and demand factors influencing the Brisbane and Queensland property market at present.

The overview of the report states”

“Following several years of falling apartment supply, the Brisbane apartment supply pipeline is now very thin and is reaching a turning point as developers begin to gear up for the next cycle. The medium term outlook for the market is bright, with fears now flipping to ones of undersupply in coming years. Robust population growth will continue to support underlying demand, while more immediately lower interest rates and easier credit conditions are lifting buyer sentiment. Increased infrastructure spending from key inner city projects, such as Cross River Rail and Queens Wharf are expected to support jobs growth, migration and apartment demand. Market recovery is already evident an the improving rental market, which together with relatively high yields, is likely to attract more investor interest to Brisbane.”

There were two graphs in the report in particular that jumped out at me. The first was were JLL thought the overall market timing was at. We often write about the HTW Property Clock (you can read the latest article here) and HTW similarly believe that the market is at or nearing the bottom.

JLL Brisbane Apartment Market Update November 2019

If you are purchasing property as an investment, it is capital growth and income returns that drive your outcome. Clearly JLL and HTW consider that there will be capital growth in coming years, but it was also pleasing to see JLL’s assessment on rental returns in Brisbane which is best understand in the below graph. It is easy to see a rise in rental returns occurring as the vacancy rates continues to drop.

JLL Brisbane Rental Market v Vacancy Rate November 2019

What does this mean if you are considering investing in property in Brisbane? It is all very positive and it should mean capital price growth in coming years. Property should always be viewed as a long term investment, so market fluctuations up and down will negate themselves when you look over the longer term……….but, as the saying going, always best to buy low and sell high!

Cameron Black - PropertyMash

Cameron Black is the founder of Cameron has been a leading pioneer in using technology to assist in property marketing and search around the world for over 25 years. He is a qualified solicitor and has a deep love of all things property related. Cameron regularly writes and presents on property and technology related issues.

Written: 5 November 2019, Updated: 6 April 2020

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