Brisbane property: building boom
05 August 2016 by News DeskBrisbane property experts say the recent construction boom will be over within the next 12 months.
Brisbane property market has seen a huge rise in construction of apartments in the city fuelled by population growth but mostly by investors seeking to meet growing demand from a fast expanding nation.
Brisbane will be one of the first capital cities to re-align its property market in line with slowing growth and demand.
Other capital cities in Australia will suffer an over-supply of properties for some years to come due to the thousands of new apartments still being built and due to come onto the market.
The Brisbane property market, however, will return to historical norms within the 2016-17 financial year according to a new report called the Construction Skills Queensland Industry Outlook 2016.
And while other capital cities continue to build apartments, Brisbane property growth will centre on traditional-style houses.
2016 will begin a recalibration of the market back toward houses as the dominant segment, the report says.
Brisbane property: building boom
While there is a growing trend for high density living, the market still prefers larger, preferably detached houses, the report adds.
In Brisbane around seven houses are built for every three apartments. But during the recent construction boom, one house was built for every one apartment.
This was an investor-driven boom the likes of which Brisbane had never seen before. But we think it will prove to be relatively short-lived, the report says. We expect high density apartment building in the southeast to return to levels closer to its historical norm in 2016-17.
Restrictions on investor lending, low apartment price growth, a soft rental market and the risk of oversupply are driving the current market changes.
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