Australia Residential Research | February 2019

1Brisbane Apartment Market – February 2019

OverviewThe Inner Brisbane apartment market will continue to stabilise

throughout 2019, as demand builds and supply is absorbed. Strong

population growth will continue to drive underlying demand,

supported by increased jobs growth and infrastructure spending.

Brisbane apartment supply peaked in 2016, in 2018, supply was

around 27% below that peak. Supply will fall sharply again in 2019

and still challenging development conditions mean it will likely

remain subdued for several more years. Rental vacancy rates for

Inner Brisbane have improved and rental rates have remained

resilient. Apartment values and rents are expected to stabilise as

supply is absorbed over the next 12 months.

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Economic OverviewPopulation growth, infrastructure spending and jobs growth

will fuel underlying housing demand over the next few years

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DemandCredit conditions continue to supress investor demand, but

sentiment is rising

Brisbane Apartment Market – February 2019

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Source: JLL

3Brisbane Apartment Market – February 2019

SupplySupply has continued to contract sharply over 2018, further sharp falls can be expected in 2019

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Pricing

Negative price growth continues, but the pace of decline is

decelerating

Rental Rates

Rental rates stabilise, as vacancy continues to tighten

Brisbane Apartment Market – February 2019

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What is in stall for 2019 nationally?

Gross Rental Yields

Site SalesSite sales volumes remain stagnant, while capital values

continue to decline

Brisbane Apartment Market - February 2019

JLL Brisbane

Hollee Hart Leigh Warner

Brisbane Apartment Market - February 2019