Brisbane’s CBD apartment market is heading for an undersupply of luxury stock, as a result of developers reconfiguring projects to suit the lower end of the market in the wash up from global economic conditions.

Ben Langfield, director of residential project marketing at Colliers International, said although the city’s apartment market had come back to life, it would be some time before any new high end projects came out of the ground.

Langfield says, “The supply of new luxury apartments… is already limited,” and “Potential new projects are being reconfigured from large three bedroom apartments to smaller one and two bedders that are driven by price, in-line with the demand for entry level stock over the past 12 to 18 months.”

New research, compiled by Colliers International research analyst Lachlan Walker, shows there are just 404 apartments currently for sale in the Brisbane CBD across four projects.  Only 17 of those available for sale could be considered ‘luxury’ in quality.

Mr Walker said the Brisbane CBD market had historically achieved an average of 484 unconditional sales annually over the last decade.

Mr Walker says, “The city is on track to a lack of product diversity in the near future,” and “Residential product which is different is likely to realise greater capital appreciation as a result because, at the end of the day, residential purchasers demand a choice of stock.”

Mr Walker said in the wider inner-city apartment ring, which includes apartments within a five kilometre radius of the city, just five residential towers would be completed this year, including The Macrossan Residences.

Blog courtesy on http://www.thehomefront.com.au