QLD Brisbane CBD Apartments

Hello all,

I am interested in buying an apartment in the Brisbane CBD to live in, however I am currently conflicted with the current news cycles that are occurring around the construction slowdown and an oversupply with apartments in Australia and Brisbane.

Why developers are delaying or abandoning half the apartments they planned to build

I understand that foreseeing the Brisbane apartment market can be challenging and uncertain, however I am hoping to grab some expertise and opinions on whether the apartment market will continue to fall for some time or whether to enter asap.

Cheers,
Nathan.

 

If you care about value and future value, I wouldn't buy a unit in the CBD with thousands of units around .

 

On the flip side if it’s not an investment and lifestyle choice with time constraints now could be a great opportunity. I’d probably steer clear of OTP given the uncertainty at the moment and maybe look for a deal on something a year or so old.

 

There is no one standard answer; you really need to look into the specifics and decide whether one property is better than the other. Do the usual research: check out the developer, the location, your finances etc etc.

I am always an optimistic person. I believe it is the best time to buy now: plenty of supplies, the market is new, everything is so affordable. Bring your best foot forward and be a good negotiator, tough but fair. You’ll get there in the end.

 

it depends, not all apartments are created Equal, sure if your talking about a high rise OTP purchase id steer clear, however there's many Unique small complex brick walk ups in nice parts of nice suburbs that are holding value and even taking offers 5% higher than asking. West end, Paddington, new farm, Bulimba, especially with a ground level courtyard of some sort. I see these as very popular now and into the future.

 

If it's for your own living then it comes down to your lifestyle needs than anything else and now could be a good time to shop around due to the oversupply of units.

Do a detailed research on the builder/construction quality, avoid the ones still being built and check out ones that's already established and have been sitting on market for a while. Ideally you would want to avoid big complexes as strata can add up very quickly. I would say right now you can negotiate hard and low ball as some vendors may be desperate to get out. And if they reject your low ball offer, simply move on to next one

Cheers,
David

 

I’m not sure I’d be buying even for lifestyle needs. Some of the strata rates are excruciatingly high in those complexes and the cost of renting would probably be cheaper than owning. That way you can decide if you like the area or complex and wait to see if the market has bottomed.

There is just no way to pick the bottom until the up trend has started. It’s fools gold and if you buy now it might drop another 10%? Just a speculative number but why not capture both, even if it’s a lifestyle buy?

- Andrew