Urbis’ latest work Basic equipment of the apartment The report revealed that there were 1,112 sales in the second quarter of 2024, with sales of more affordable apartments increasing, particularly in Sydney and Melbourne. However, the situation was different in Queensland as developers catered to demand for high-end luxury properties.

The urban planning consulting firm analyzed more than 162 housing projects across the country, from pre-sales to new construction, and found that the average price of pre-sales and construction apartments in the second quarter of 2024 was $1.3 million.

Brisbane’s median pre-sale and under-construction apartment price of $2.2 million was by far the highest in Q2 2024, closely followed by the Gold Coast at $1.8 million.

Sydney’s average apartment price of $1.1 million came in third, significantly lower than both Queensland countries. Urbis said the Sunshine State had more luxury properties for sale, while Melbourne, Sydney and Perth had more one-bedroom apartments for sale.

Urbis director Paul Riga described the disparity as a “tale of two markets”, with top-selling projects in Sydney and Melbourne becoming “more affordable” while “the Brisbane and Gold Coast markets continue to target the luxury/premium market”.

Owner-occupiers are outpacing investors in buying up properties

The report also indicated that in the second quarter of 2024, apartment owners will continue to express great interest in the ready-to-move-in apartment market, while demand from foreign investors will remain relatively low.

This continued demand from owner-occupiers resulted in a dominant demographic group in the surveyed sales results, with Sydney, Melbourne and Inner Brisbane seeing ownership rates ranging from 70% to 80%.

Condominium sales in Perth and the Gold Coast were slower, accounting for 48 per cent of total sales.

Urbis noted that in Perth, a large proportion of investors were motivated primarily by interest in one specific project, rather than representing the broader market.

Prices outside the plan are rising

Urbis also reported that the price per square meter of pre-sale and under-construction apartments “continues to grow” and in the second quarter of 2024 amounted to just over $14,000 nationwide.

The disparity between Queensland’s markets became apparent again as Inner Brisbane and the Gold Coast emerged as the two most expensive markets, with prices of $18,000 and $17,000 per square metre respectively.

Sydney’s growth has been primarily focused on the western suburbs, where Riga has emphasised increased infrastructure and the ability to “deliver affordable housing with improved connectivity”.

The upward trend in rent growth

Urbis’ Rent Information Panel, which tracks rents from 19,000 listings in some 1,700 projects, has revealed further rent growth in Q2 2024, even as reports suggest rent growth has already started to slow.

The national average weekly rent for a ready-to-move apartment in Q2 2024 was $700, with Sydney being the most expensive market ($800 per week), closely followed by the Gold Coast ($798 per week).

Despite this, rent growth was observed to be at a slower pace, with the national rent growth of 7% between 2023 and Q2 2024 being lower than the 20% growth seen between 2022 and 2023.

“New dwelling rent growth was stronger in the quarter for Sydney and the Gold Coast, lifting the national figure. However, we see moderate rent growth in Inner Brisbane, Melbourne and Perth,” Riga concluded.