Brisbane’s apartment market is completing a full cycle from overbought to boom
Developing Queensland: Aerial view of the Brisbane Bridge at sunset. Also known as the Story Bridge, it is one of the longest bridges in the world at 1,066 meters.
Property experts say Fortitude Valley units have doubled in value in just three years, signaling the end of Brisbane’s apartment market nightmare.
The one-bedroom residence at 809/8 Church St was purchased in December, 2022 for $301,000 and sold this month through Michael Kafantaris of Place New Farm for $600,000.
![](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 1280 720"%3E%3C/svg%3E)
513/8 Church Street, Fortitude Valley recently sold for $582,000.
Place New Farm’s Michael Kafantaris says supply is tight, space is tight and the mindset has changed in Brisbane’s apartment market.
Mr Kafantaris said the result reflected a structural reset rather than speculation.
“This is an apartment cycle at one address,” he said.
“Between 2014 and 2018 Brisbane delivered significant urban renewal.
“Liquidations outstripped demand, investor confidence weakened and prices fell.”
The Church Street house followed that path.
MORE NEWS: Last-minute call wins $8.25m at beach shack auction
Areas in the suburbs will improve as the council unveils plans
How a new tower aims to free up homes in Brisbane
2003/107 Alfred St, Fortitude Valley recently sold for $575,000.
It sold for $386,460 during the 2011 developer boom before falling to $242,000 in 2018
the height of oversupply.
Prices then stabilized before accelerating significantly in the current cycle.
“That time created doubts about the units,” said Michael.
“Buyers have been avoiding apartments for years.
“Now supply is tight, space is low and the psychology has changed.”
513/8 Church Street, Fortitude Valley recently sold for $582,000.
He said the pace of price growth reflects years of operational delays.
“For most of the last decade, real estate has lagged behind capital growth,” he said.
“The ten-year doubling rule does not apply to units during over-allotment years.
“What we’re seeing now is delayed growth occurring at a compressed time.”
He said increased competition from first-time buyers and investors, combined with rising switching costs, is supporting the already stagnant domestic capital stock.
2003/107 Alfred St, Fortitude Valley recently sold for $575,000.
Damian Hackett of Place Advisory said the supply demand equation has changed.
“During the last cycle, new completions exceeded population-driven demand,” Damian said.
“Now, population growth across South East Queensland remains strong, but the development pipeline is lower than it was a decade ago.”
809/8 Church Street, Fortitude Valley is for sale for $600,000.
K&S Property Group founder KC Yeung said strong interstate and overseas migration, combined with a shortage of new housing, is expected to see Brisbane rental demand high, vacancy rates low and productivity high.
“Brisbane is changing from a lifestyle city to an international destination, and that’s changing the property market dramatically,” Mr Yeung said.
“Having so many residents means that the demand for renting will remain high because people like to rent before they buy while studying the area.
“For consumers, this creates strong long-term fundamentals, while retailers see increased competition from domestic and middle-class buyers.”
