Developing Queensland: Aerial view of the Brisbane Bridge at sunset. Also known as Story Bridge, it is one of the longest cantilever bridges in the world at 1,066 metres.
Property experts say a Fortitude Valley unit that doubled in value in just three years, signals the end of Brisbane’s apartment market nightmare.
The one-bedroom residence at 809/8 Church St was bought in December, 2022 for $301,000 and this month sold through Place New Farm’s Michael Kafantaris for $600,000.
513/8 Church Street, Fortitude Valley recently sold for $582,000.
Place New Farm’s Michael Kafantaris says supply is tight, vacancy is low and the psychology has shifted in the Brisbane apartment market.
Mr Kafantaris said the result reflected a structural reset rather than speculation.
“This is the apartment cycle in one address,” he said.
“Between 2014 and 2018 Brisbane delivered significant inner-city supply.
“Completions outpaced demand, investor confidence weakened and prices softened.”
The Church Street apartment followed that path.
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2003/107 Alfred St, Fortitude Valley recently sold for $575,000.
It sold for $386,460 during the 2011 developer boom before falling to $242,000 in 2018 at the height of oversupply.
Values then stabilised before accelerating sharply in the current cycle.
“That period created hesitation around units,” Michael said.
“Buyers avoided apartments for years.
“Now supply is tight, vacancy is low and the psychology has shifted.”
513/8 Church Street, Fortitude Valley recently sold for $582,000.
He said the pace of price growth reflects years of delayed performance catching up.
“For much of the past decade, apartments lagged houses in capital growth,” he said.
“The ten-year doubling rule did not apply to units during the oversupply years.
“What we are seeing now is that delayed growth occurring in a compressed time frame.”
He said increased competition from first-home buyers and investors, combined with rising replacement costs, is supporting established inner- ring stock.
2003/107 Alfred St, Fortitude Valley recently sold for $575,000.
Place Advisory’s Damian Hackett said the supply-demand equation had inverted.
“During the previous cycle, new completions exceeded population-driven demand,” Damian said.
“Now, population growth across Southeast Queensland remains strong, but the development pipeline is less than it was a decade ago.”
809/8 Church Street, Fortitude Valley sold for $600,000.
K&S Property Group co-founder KC Yeung said strong interstate and overseas migration, combined with a shortage of new residences, was expected to see Brisbane’s rental demand high, vacancy rates low and yields strong.
“Brisbane is transforming from a domestic lifestyle city into an international destination city, and that fundamentally changes the property market,” Mr Yeung said.
“The fact that we are receiving so many new residents means rental demand will remain elevated because people almost always prefer to rent before they buy while they learn the area.
“For buyers, this creates strong long-term fundamentals, while sellers are seeing heightened competition from both local and interstate purchasers.”
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