Apartments are in high demand

---

Families priced out of Brisbane’s red-hot housing market are driving a surge in apartment demand, with units costing as little as a quarter of the median house price.

Exclusive data has pinpointed the suburbs where units deliver the best value — not only slashing costs compared to freestanding houses but also offering generous living space.

Research by SuburbData also highlighted a divide between luxury suburbs, where apartments were far cheaper than houses, and more affordable areas, where unit prices were as much as 70 per cent of houses but had comparable floor space.

This Auchenflower unit sold for $741,000

---

Leading the list of 29 suburbs was ritzy Teneriffe, where a typical unit priced at $908,000 was just 22 per cent of the jaw-dropping median house price of $4.11m.

Buyers in Paddington and Auchenflower also benefitted, with units priced at 34.6 and 33.8 per cent of houses, providing proximity to the city without the hefty outlay.

SuburbData’s analysis shows units in key family-oriented areas still delivered on space, with those in Taigum and Highgate Hill offering 38.5 and 36 per cent of the typical house block size.

In Taigum, units averaged 2.4 bedrooms compared to 3.6 for houses, with a typical buy-in of 71.6 per cent of the median house price of $809,000 — a balance attracting young families seeking space without breaking the budget.

A three-bedroom apartment in Kedron sold for $675,000

---

More affordable markets were Redbank Plains in Ipswich, where units cost $513,000 and typically offer one quarter of the space of freestanding houses, and Michelton, where the average apartment value of $597,000 was half the price of a house.

The research considered relative house and unit prices in each suburb, as well as typical floor space or house block size and number of bedrooms in the respective dwelling types.

The growing preference for units reflected broader lifestyle changes, according to industry experts.

PropTrack’s latest Home Price Index showed Brisbane apartment prices surged 17 per cent over the past year to a median value of $670,000 in October, outpacing houses which were up 12 per cent to $970,000.

A three-bedroom apartment in Kedron sold for $675,000

---

MORE NEWS

‘Unfair’ bank policy stopping thousands from owning a home

Surprise factor making homes 10pc cheaper

Revealed: the lifestyle hotspots in line for 100 new homes

SuburbData analyst Jeremy Sheppard said the research showed where some of the best unit buying opportunities were in the current market.

“There’s the potential for buyers to get good value in a location where they want to live but can’t afford a house,” Mr Sheppard said.

He noted that the gaps between unit and house prices were at record highs in some areas, suggesting apartment buyers could get more value than usual.

A common theme among the markets where units were selling for hundreds of thousands of dollars less than similarly-sized houses in the area was a long history of house subdivisions nearby.

Highgate Hill apartment sold for $825,000

---

“Unit sizes tend to be fairly similar across areas, while houses can vary,” he said. “Often the best value units are in established areas where most of the houses are on smaller blocks.”

But Mr Sheppard also cautioned buyers to be highly selective in the types of units they targeted.

“One of the problems with units is that oversupply can be a real killer of the long-term value,” he said.

“It’s best to try to avoid units in high-rise buildings and rather focus on boutique blocks where there are only a few apartments there.

“A good sign is if there’s no lift. It means there will be less apartments jammed into the same building and the strata fees are often lower.”

Hotspotting director Terry Ryder said inner-city unit markets were leading growth. Picture: Supplied

---

Hotspotting director Terry Ryder said the trend mirrored other states, with inner-city areas leading the charge. Bowen Hills was recognised as Australia’s top Supercharged Suburb by the Hotspotting Spring 2024 Price Predictor Index, indicating potential for future price growth.

“In areas like Newstead, Bowen Hills, Fortitude Valley, and the Brisbane CBD, units are in high demand and often preferred over houses,” Mr Ryder said.

“This precinct is desirable for its close proximity to the CBD and is benefitting from ongoing improvements to connectivity and amenities, such as the $6.3b Cross River Rail project.”

TOTAL Property Group managing director Adrian Parsons said younger, high-net-worth buyers aged between 35 and 45 were leading demand for luxury apartments, while working families were drawn to convenience, lifestyle and affordability. ABS figures show 32 per cent of interstate arrivals were aged between 25 and 44 years.

Total Property Group director Adrian Parsons said younger buyers were active in the luxury apartment sector. Picture: Glenn Hampson.

---

“The market in southeast Queensland has matured and there’s now a significant focus on apartment living, which has become more desirable because of the high level of luxury amenities developers are adding within the apartment buildings,” Mr Parsons said.

“The way people are living has changed. Technology has given us the freedom to live and work where we want to, while on the other hand we have become increasingly busy.

“People in their prime working years either don’t have time, or do not want to maintain a house and yard and this has changed the way younger people view their living environments.

“The introduction of larger, two and three-bedroom apartment residences in key locations is attracting young families, who traditionally would have purchased a house with a yard. It makes sense these days as children are spending less time outdoors and when they do go outside, they are happy to play at a local park or the beach,” he said.

Elisa McMahon said house-sized apartments were selling fast. Picture: Josh Woning

---

McMahon Estate Agents principal Elisa McMahon has just settled 11 house-sized apartments in Park Lane Residences, a project in Lutwyche — all to owner-occupiers.

“The majority of apartments are three-bedroom plus a multi-purpose room, or four bedrooms,” Ms McMahon said.

As well as downsizers, the buyers were made up of families with school-aged children looking for a more affordable option in an inner-city market, she said.

“What I’m finding interesting is apartments seem to be accelerating in price growth at the same pace as houses, or actually outperforming them in some markets.”

Ms McMahon said many young, professional singles and couples were also opting for an apartment over a house because of affordability and lifestyle preferences.

“Since 2014, we’re really seeing people starting to make the downsizing move (to an apartment) earlier as Brisbane’s lifestyle and entertainment precincts improved,” she said.

“We’re now delivering beautiful, owner-occupied stock compared to the investor-driven apartment product on the market 10 years ago.”

Unit in Teneriffe sold for $810,000

---

TOP VALUE UNIT MARKETS

Suburb/units typical value/unit prices as % of houses

TENERIFFE/$908000/22.1

KANGAROO POINT/$821000/39.8

HIGHGATE HILL $903000/ 44.5

PADDINGTON $789000/ 34.6

AUCHENFLOWER $691000/33.8

WEST END $790000/ 47.4

WOOLLOONGABBA $709000/ 46

GORDON PARK $667000/ 39.6

CLAYFIELD $696000/ 36.7

WINDSOR $614000/ 38.6

KEDRON $635000/ 45.3

CANNON HILL $651000 /53.4

ALDERLEY $744000/ 49.6

SHERWOOD $690000/ 44.4

LUTWYCHE $656000/ 56.2

TAIGUM $580000/ 71.6

NORMAN PARK $776000/55.8

WOODY POINT $780000/ 103.6

WYNNUM $801000/ 64.8

MITCHELTON $597000/ 54.1

NUNDAH $629000/ 55.7

GREENSLOPES $673000/ 51.5

WYNNUM WEST $666000/ 70.5

MORNINGSIDE $714000/ 77.7

REDBANK PLAINS $513000/ 73.5

CARINA $809000 /72.6

REDCLIFFE $712000/ 83.8

COORPAROO $698000/ 52.5

ANNERLEY $662000/ 61.3

* source: SuburbData