In FY2020, 5,000 apartments were completed; a slight increase on the 4,700 apartments completed in FY2019.
Apartment completions across Metropolitan Brisbane peaked in FY2017 and FY2018, at an average 10,000 apartments per annum.
Completions have fallen by almost half over the following two years, and in FY2021 are on track to record the lowest level of completions since FY22014 (3,300 apartments.) Beyond 2021, completions are forecast to continue to fall further in the absence of new projects beyond those already identified coming to the market.
On top of this, a leading real estate researcher is predicting as many as 30,000 people fleeing Melbourne over the next two years due to the extended coronavirus lockdown. While some analysts are already seeing this market movement researcher Simon Pressley has said the mass exodus would mark one of the biggest ever swings in internal migration in an Australian city.
CONCLUSION
Property prices are driven up by three things:
- Supply-side constraint
- Location demand and,
- Access to money.
While interest rates are currently at a historic low, all signs suggest that apartment price growth in Brisbane is set to see a positive growth cycle.
