WHY NOW IS THE PERFECT TIME TO BUY AN APARTMENT OFF THE PLAN

Opportunities to make gains on property are being snapped up in Southeast Queensland as population growth outstrips housing availability, driving up demand for apartments from buyers who would have traditionally purchased a house with a yard.

A combination of strong population growth, dwindling building approvals, lack of new construction starts and significant infrastructure investment in Southeast Queensland has formed up a robust and stable market which will build momentum towards the 2032 Brisbane Olympic Games and beyond.

With Southeast Queensland at the beginning of what property market commentators are calling a “Golden Decade”, now is the time to lock in today’s prices by purchasing an apartment off-the-plan.

TOTAL Property Group’s Managing Director Adrian Parsons says he predicts considerable capital gains can be expected over the next decade by buying off-the-plan apartments now.

“Over the next decade we can expect steady price increases so we advise property buyers to act sooner rather than later and benefit from today’s prices,” Mr Parsons said.

“There is an apartment under-supply across the whole Southeast and development completion levels are already low with few major projects commencing, which means supply cannot keep pace with underlying demand growth from very strong migration.

“Property prices are the highest we have seen in Southeast Queensland, largely due to the lack of new construction in the market, and this is expected to continue driving prices up.”

The most recent Census data from the Australian Bureau of Statistics (ABS) shows Queensland’s annual population growth rate is continuing upward, rising 2.6% in 2023 (above the national average of 2.4%), to welcome 138,470 new residents totalling an estimated 5.5 million persons in 2023 with the State Government projecting the population will reach close to 6.7 million by 2036.

As interstate migration to Queensland continues to exceed on previous years, overseas migration hit record levels in 2023 with more than 60% of Queensland’s population growth gained from 84,000 people moving from overseas, according to ABS.

“While Queensland is experiencing the largest positive population change in its modern history, approvals for dwellings are falling, which is concerning,” Mr Parsons said, commenting on ABS reports that development approvals for dwellings in Queensland fell by -2.5% in April.

“The population growth combined with an extremely tight property market is underpinning the rise in house and apartment prices we have been seeing and this is only going to continue as Queensland gears up for the 2032 Olympic Games and basks in the Olympics glow for the years to follow.

“All eyes are on Southeast Queensland and interest is coming from domestic, interstate and international buyers who see Gold Coast and Brisbane markets performing strongly and the potential for further growth in the foreseeable future.

“People who are not ready to make the move or need more time to save for their dream home should take the opportunity to buy off the plan and secure a property at today’s price before they rise further.

“It makes perfect sense to consider where you want to be in the future and invest in it now to maximise the benefits.”

With more attention on Southeast Queensland than ever before, and particularly the Gold Coast which has matured into a cosmopolitan coastal city with sensational beaches and weather, homeowners and investors from the southern states are continuing to look north for opportunities in terms of lifestyle and capital growth prospects.

The TOTAL Property Group team is at the coalface of buyer demand for Southeast Queensland property, specialising in the marketing and sales of some of the leading new and off-the-plan quality apartments.

Mr Parsons said while the majority of buyers securing their off-the-plan apartments in Southeast Queensland were Queenslanders embracing apartment living to future proof their empty-nesting years in luxury lifestyle developments, more buyers from Melbourne and Sydney were beginning to see Gold Coast and Brisbane’s full potential – a stable region to invest as well as a high-quality lifestyle to relocate.

“Some are purchasing holiday homes, others are selling their suburban or city homes to relocate to luxurious apartments on the beach. Now the investor is returning and all indicators signify a golden era ahead,” Mr Parsons adds.

“Brisbane’s market has changed dramatically in the last few years. Dwelling supply is not meeting the high demand from interstate and local buyers and as a result, properties are selling for prices well above expectation. We speak to a lot of buyers who are confident in investing in Brisbane.

“Brisbane property prices are at an all-time high. CoreLogic’s latest Home Value Index reported that Brisbane’s median dwelling value is now the second highest in Australia to Sydney, rising 3.9% in the last quarter to close to $850,000, above Melbourne that experienced a -0.2% drop.

“And it’s not just the prices that are performing exceptionally well. The average time it takes to sell a unit in Brisbane is just 35 days, which is the fastest rate in the nation.

“Gold Coast has also come of age. CoreLogic’s report revealed the top ten Queensland regional suburbs with the highest 12-month value growth and five of the ten are located on the Gold Coast.

“This vibrant regional centre of Southeast Queensland has become a beachside city metropolis that is attracting interstate and international buyers to relocate and invest.

“When you look at the employment sectors, the medical sector is now bigger than tourism. Manufacturing is the largest domestic and international trade industry that regularly outperforms state and national industry growth with strong supply chains and economic flow-on.

“Gold Coast’s median dwelling value was reported by CoreLogic to rise 3.1% in the last quarter to above $907,000, which is a yearly increase of 7.3% and a massive 63.5% increase on five years ago.”

TOTAL Property Group specialises in working with apartment developers on every single aspect of a development in terms of location, orientation, the architect and interior designer, the builder and financer – all the “layers and levels” that go into creating successful, quality apartment development where apartment buyers desire to live and thrive. The team carefully selects property developers to work with, providing purchasers with a level of certainty when buying off the plan.

Substantial success across all TOTAL Property Group’s developments reflects this and the team’s deep understanding of Southeast Queensland’s bustling real estate landscape. Having earned a reputation over the past 23 years as a dynamic, innovative and progressive property organisation, TOTAL Property Group consistently delivers the highest quality service and support to buyers and sellers alike.

The team is based in Southeast Queensland with offices on the Gold Coast and Brisbane, as well as in Sydney to service the influx of southern buyers looking at opportunities in the Sunshine State. For more information phone 1300 393 855, email [email protected] or visit www.totalpropertygroup.com.au.

Originally published by TOTAL Property Group.

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