David Beard of Property Direct, which specialises in the sale of new apartments and townhouses for developers, said good quality stock was still in demand, and it was the drop in investor sales that was driving claims of an oversupply.
“The sales we have done in multiple projects reveal there is still a very strong demand from owner-occupiers and downsizers,” he said.
“Over-supply in this part of the market is simply a myth, although buyer tastes have been changing.”
Property Direct is currently marketing about $800 million worth of apartments and townhouses in the southeast.
Mr Beard said local buyers were responsible for about 90 per cent of sales and about 95 per cent of all stock sold off-the-plan, with projects in Brisbane’s middle ring becoming increasingly popular.
“Over time, Brisbane property buyer needs and preferences have changed,” Mr Beard said. “We are definitely noticing the trend away from small CBD apartments to the suburbs, where homes are larger and designed for owner-occupiers.”
The company is currently selling remaining stock for a number of developers, including Sherwood Residences (CS Development Group), Breezes on Bardon (Delta United) and Park Hill Village Collection (Juxgold) at Murrarie.
Only five of the 51 apartments at Sherwood Residences remain on the market, just two of the 26 terrace homes in Park Hill’s stage two are still for sale.
Mr Beard said the trend for apartment and townhouse living away from the city centre was recognised in Shaping SEQ, the latest regional plan.
“There is certainly going to be a continued need for innovative housing solutions as more families make the shift to apartment and townhouse living,” Mr Beard said.
“Good quality boutique projects, which put the owner-occupier first, are likely to continue to be in strong demand throughout southeast Queensland.”
Originally published as New townhouse market strong