Opportunities are ripe for developers in the residential sector, says property specialist Adrian Parsons, who is seeing a rapidly-forming downsizer market soak up supply of quality owner-occupier apartments in Brisbane.
TOTAL Property Group Managing Director Mr Parsons says Brisbane is heading for an undersupply of quality apartments, with demand being driven mostly by downsizing buyers who are not affected by bank-lending restrictions or economic uncertainty.
Mr Parsons’ forecast for Brisbane’s apartment market is that supply will drop unless developers begin restocking now to meet growing demand.
“Good opportunities exist now for developers to take advantage of Brisbane’s downsizer market, which is the city’s strongest market right now,” he said.
“Downsizers are generally debt-free, keeping them immune to issues that affect the property market, such as the Royal Banking Commission and credit tightening.
“Developers should be looking to secure sites now for the next wave of downsizers, who will be seeking quality apartments in buildings with a strong community focus within Brisbane’s cityfringes.”
TOTAL Property Group specialises in project marketing services for apartment developers, from inception and design to development and off-the-plan sales, all the way through to settlement.
By working with a developer throughout these phases, TOTAL Property Group has achieved a 100% settlement rate on projects including The Wellington in East Brisbane and Gasworks Residences at Newstead.
“Developers need to be careful about design with more of a focus on owner occupiers to be successful in this marketplace,” Mr Parsons said.
“We receive around 700 inquiries per month from apartment buyers and the strongest message we are getting is that downsizers are seeking spacious apartments in stylish buildings that offer a sense of community.
“What they are doing is upsizing their lifestyle by selling up the family home to move into a brand new apartment within Brisbane’s city fringe, with dining, shopping, entertainment and all the necessary services and infrastructure on the doorstep.
“We have observed that after downsizers shop around, they return to our projects with a sense of urgency because there is limited quality owner-occupier apartment stock available.”
“We are seeing the supply of quality apartments in Brisbane start to steadily deplete and that’s why property developers need to be active now in securing new sites for this market segment.
Mr Parsons said by focusing on owner occupiers, TOTAL Property Group had helped developers shape and redesign their buildings to appeal to a wider section of the community, while retaining investor appeal.
With downsizers occupying at least 50% and as high as 75% of apartments in properties marketed by TOTAL Property Group, it demonstrates how a project can become more appealing when the development focus is on the owner occupier.
The company has been operating in the Brisbane property market for 11 years, providing developers with valuable local knowledge and an understanding of the market to see early emergence of new trends for the sales team to capitalise on.
Market research collected over this time equips the team with accurate data and up-to-date tools to use when assessing property for developers to advise on how to best utilise a block of land to capture a wide market.
By identifying gaps in the market that a development can address, TOTAL Property Group ensures the projects they are involved in have a competitive advantage and are in demand.
“We help developers understand what an area will look like 10 years from now to help get them ‘ahead of the game’, and based on current inquiry and demand, it’s downsizers that will be driving the property market for some time,” Mr Parsons added.
“No longer can a property developer look at historic data, as the property market is changing at such a quick pace, but we have the tools and expertise to guide developers through the inception and design phase to ensure the best outcome for their projects.”