The Australian apartment market is expected to experience robust growth over the next year, according to a recent survey conducted by CBRE, Hotspottting reported.
With increasing costs and slow production pipelines, valuers predict strong performance, especially in Perth, Brisbane, and Adelaide.
A survey from CBRE shows that 45% of property valuers anticipate an increase in buyer demand for apartments over the next 12 months, a slight decline from 57% in March.
However, optimism remains high with more than 50% expecting price increases in the apartment sector.
Valuers are particularly bullish about apartment values in Perth, where more than half expect a minimum price increase of 5%. Similarly, around one-third of valuers predict that apartment prices in Brisbane and Adelaide will rise by the same margin.
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Sameer Chopra, CBRE’s Pacific head of research, highlighted the current challenges in the apartment market.
“The production supply pipelines for apartments are slow, so there is not a lot of new stock coming onto the market,” Chopra said.
“The cost of putting up a new apartment is now 35% higher than where it was sitting in 2019.” He added, "More people are coming to this realization that it’s just very expensive to build brand-new stock, so they will pay more for the right stock today.”
The CBRE survey also indicated broader optimism in the housing market, with more than 40% of valuers expecting house prices to rise by more than 5% in the coming 12 months.
The metropolitan areas of Perth, Adelaide, and Sydney are expected to lead this trend, reflecting a robust overall property market in Australia, Hotspotting reported.
Read the Hotspotting article here.
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