An undersupply of apartments is looming for Brisbane with apartment completions this year expected to be the lowest since 2013, reports theurbandeveloper.com.au.

Brisbane is tipped to the be the first east coast city to experience this undersupply. Over the past two years apartment completions have dropped by nearly half. With regards to apartments being commenced; 2,100 were commenced in 2019, which was a decrease from the 5,100 commenced in 2018. 

In 2016, the number of apartments completed in Brisbane was 11,100 and 10,800 in 2017. 

Brisbane needs approximately 23,000 additional dwellings each year to keep up with current predicted growth rates. 

Property advisory group Charter Keck Cramer announced the undersupply could be felt around the nation by 2022 which would be largely due to reduced construction activity and population growth. 

Moody’s Analytics have predicted the Brisbane CBD apartment market will “outperform the rest of the nation over the next two years,” forecasting growth of 5.8% growth in 2020, reported realestate.com.au last year.

Hananh Schuhmann said the impending undersupply of apartments signals a likely ‘step up’ in market values for second hand units. There is excellent value-for-money in the CBD with established apartments in great locations. New and ‘off the plan’ units are already selling for 15-20% more than existing stock. The Lexicon complex on Ann Street which will only be 15 minutes walk to the new Queen’s Wharf development, has 2 bed, 2 bath plus a car space for under $500k. Get in now before the before the lack of stock pushes prices up!