Buying a unit in Brisbane right now can most certainly be a good investment but it involves knowing where to buy, what type of unit to buy and having a well thought out investment strategy. There are certain pockets of Brisbane where units are performing extremely well and other pockets that are not performing as well. To understand more about buying a unit Brisbane read on…we will let you in on some insider knowledge that will set you on the right track to making an investment that meets your particular goals.
Is now a good time to buy a unit in Brisbane?
It was not that long ago that units in Brisbane were not performing well due to oversupply issues. Those who are in the know in the Brisbane property market, however, know that units are now powering along. As a Brisbane buyers agent we are on the ground every week witnessing the high demand for units and the lightning speed at which A-grade units and even not so A-grade units are selling. We see first home buyers, down sizers, empty nesters, single home buyers and investors out every weekend competing to buy units in Brisbane.
House prices in Brisbane have soared so greatly in the past few years that units are now better value and more affordable for home buyers and investors and this is driving the high demand for units.
The median value of a unit in Greater Brisbane is now $587,793 (as of March 2024) which is $96,398 higher than what it was 12 months ago. Property experts are predicting further growth in Brisbane units which is attracting interest from investors. Buying a unit in Brisbane is still more affordable than buying a unit in Sydney or Melbourne and that is also why investors are diving into the Brisbane unit market.
Brisbane units vs houses
Buying a unit in Brisbane is not only more affordable than buying a house, the unit sector is now actually outperforming the house sector in Brisbane based on CoreLogic’s data for the last 12-month period (March 2023 – March 2024). Unit prices increased 16.4% in the past 12 months to March 2024 compared with houses that increased 15.9%.
Brisbane unit rental returns
Unit rents in Brisbane are up 11.2% over the past 12 months (March 2023 – March 2024) compared with house rents which have also increased but less significantly at 7.6% in Brisbane over the past 12 months. Yields in Brisbane are performing strongly at 5% for units compared with 3.65% for houses.
Domain’s latest Rent Report released in April 2024 revealed that Brisbane’s average unit rental yield is 5.5%, while Sydney’s is a lower at 4.67%. The national average, according to the Domain report, is 5.1%. Investors see longer-term growth in Brisbane due to the high level of infrastructure being built here for the Olympics and the number of people moving here.
So now you know the facts. It is a good time to buy a unit in Brisbane. But what type of unit and where?
Types of units to buy in Brisbane
Buying a unit in Brisbane can be a daunting task especially as there are so many different types of units to choose from. You can buy an old brick unit in a low-rise building, a luxurious new apartment in a high rise building with spectacular river views or an affordable unit in a high-density area surrounded by lots of similar units just to name a few.
Choosing the right type of unit to buy really depends on your budget, appetite for renovation and investment strategy. Are you wanting to live in the unit? Lease it out and achieve a high yield return or hold it for capital growth over the long term? Knowing which type of unit is the right one for your investment goals can be complicated and if you don’t have a clear investment strategy it could be worthwhile talking to an expert such as a buyers agent to determine the right unit for you to buy in Brisbane.
Beware of buying these types of units in Brisbane
If you are looking at buying a unit in Brisbane and are seeking a low-risk investment we would caution against buying a unit off the plan or brand new. Buying off the plan does not offer certainty in terms of price, timing, and finished product. It is a more prudent option to purchase a unit that is at least three years old as any defects or issues with a building will be known by then and you can inspect the finished product rather than merely viewing an artist’s impression of what it might look like when it is completed.
Best places to buy units in Brisbane
Probably the most important decision when buying a unit in Brisbane is choosing the right location. If you live overseas or interstate it can be difficult to understand the nuances of each area of Brisbane and that is where a Brisbane buyers agent can step in and provide expert advice on where best to buy a unit that aligns with your investment strategy. Particular areas are better for capital growth while other areas are better for yield.
Certain areas of Brisbane are designated for high-density living and we would caution against buying units in some of these areas due to over-supply risks. Low density inner-suburbs of Brisbane are worth considering but bear in mind certain pockets are more lucrative than others. Speaking to a buyers agent that specialises in Brisbane’s inner suburbs is a good idea when buying a unit in Brisbane if you want to achieve a particular investment result.
Do your due diligence before buying a unit in Brisbane
Arm yourself with as much information as possible before buying a unit in Brisbane. Due diligence is critical for making a sound investment. Be sure to research: Body Corporate Disclosure Statements, levy information, Statements of Income and Expenditure, AGM Minutes, Body Corporate By Laws, flooding and noise risks.
Contact Us
If you’ve decided that buying a unit in Brisbane is a smart move and require some assistance with the process, be sure to get specialised advice. We are here to help you achieve your unit buying goals. If you don’t know what type of unit to buy in Brisbane or in which location we can support you in your property purchase journey.