Keeping your cool as Brisbane’s unit market heats up

Keeping your cool as Brisbane’s unit market heats up

 

Brisbane’s unit market is showing early signs of continuing last year’s momentum in 2024, with sales, price growth, and rental yields all on the rise.

 

A Data-Backed Deep Dive into the Unit Value Boom

 

According to realestate.com.au, the Brisbane apartment market has seen a significant boom, with 817 apartments sold in 2023, the most sold annually compared to the last five years. 

 

This surge in value has shown no sign of slowing down in 2024, with unit values rising to 587,000 in March, then $616,000 just two months later in May. This recent figure proves a 10% increase in unit values across Brisbane in the past 12 months alone. As well, buyer demand has sky-rocketed by 5%, making the local market a battlefield for hungry property hunters.

 

As Qualified Property Investment Adviser and Brisbane-based buyer’s agent Lauren Jones suggests, Brisbane’s unit market is currently one of the most competitive markets in Australia. Demand is stronger than ever, and listings have remained low all year. 

 

According to Corelogic, lower quartile market segments—including units—are moving much faster than the upper quartile house market and high-end properties. This is likely a by-product of the affordability pressures increasing nationwide as the cost-of-living crisis becomes more wide-spread. Unfortunately, this only means that unit values—and all property values, for that matter—will continue to rise into the predictable future.

 

This is especially true for units located in Greater Brisbane, as Miss Jones’ research suggests the local market has shown better median price growth in comparison to both Melbourne and Sydney over the past year.

 

How LJBA is Navigating the Market Shift

 

Lauren Jones and Jessica Giandomenico from Lauren Jones Buyers Agency confirm that they’ve had their work cut out for them in 2024 as they navigate the high buying demand in Brisbane’s unit market. However, these professionals both agree that now is a great time to buy or invest—if you have the skill (and willpower) to do so.

 

Jessica shares, “Buyers are getting pushed out of the house market and moving into the apartment and townhouse market due to price point and budget constraints. Apartments are the entry level for a first home buyer and offer low maintenance, single level living for downsizers.”

 

As such, LJBA is now experiencing more clients than ever jumping onboard with the hopes of purchasing an apartment, villa or townhouse—many of which who are, indeed, first home buyers and downsizers.

Here are some key shifts in the market the LJBA Team have adapted to in 2024:

 

  • Requiring tighter conditions i.e. shorter finance and building & pest inspection clauses
  • Seeing more enquiry from tight budgeted buyers who wouldn’t historically use a buyer’s agent
  • Needing to move on properties faster than ever
  • Seeing fewer A-Grade off market options
  • Relying more heavily on LJBA’s relationships with local selling agents
  • Seeing properties go under contract within a week across dozens of local real estate firms
 

Lauren shares that, in February 2024, “LJBA swiftly secured a villa for a client that was $30,000 cheaper than their budget. Before our client had even settled, another villa in the complex sold for $20,000 greater than what our client paid, and this one still needed the flooring to be completely redone!”

 

By keeping up with Brisbane market’s lighting pace, LJBA was able to save their client a small fortune and beat the unexpected unit value boom that was just weeks away from hitting the complex.

 

Should I Engage a Buyers Agent?

 

Of course, this decision is entirely dependent upon you—your desires, your timeframe, and your ability to navigate Brisbane’s unit market with or without professional assistance.

 

However, with the unprecedented growth and fiercely competitive nature of Brisbane’s unit market, buyers looking to secure their ideal property in 2024 should strongly consider engaging the services of a buyers agent.

 

Through bringing invaluable expertise and insights to the table, as well as helping to navigate the complexities of property transactions with ease, engaging a buyers agent might be your best strategy.

Buyers agents also have access to off-market listings and can provide strategic advice, ensuring that buyers do not overpay in the heat of bidding wars. Additionally, their negotiation skills can be pivotal in securing favourable terms and conditions.

 

Jess shares that earlier this year, LJBA was up against 27 other offers for a townhouse, but it was their offer—and their incomparable talent for negotiation—that secured them the property.

 

“Week after week,” Lauren explains, “the LJBA team runs into the same buyers at open homes as they struggle to compete in the current, crazy conditions of Brisbane’s apartment market.”

 

In such a high-stakes market, a buyer’s agent offers the invaluable advantages of persuasion and precision. They may well be your ticket to property purchase success.