High Rise Investment - South East Queensland's Last Affordable Buy
South East Queensland high-rise apartments are a lucrative and desirable investment property. The region’s strong population growth continues to drive interstate migration, thanks to steady growth and more affordable prices compared to other state markets. So why are high-rise apartments stealing the show?
To gain a clear picture of current market trends, consider a few key factors. While demand for houses remains high in most suburbs, high-rises offer low maintenance, lower prices, and access to all the lifestyle perks that interstate migrants, downsizers, and first-home buyers seek.
In the past, high-rise apartments in these areas were a pipe dream. However, the tables have turned and here is the evidence.
Houses Versus High Rise in SEQ Desirable Suburbs
If you are in the market for a three-bedroom house in Nundah Brisbane, you have the choice of ten, with most stating “contact agent” and one listed at "high three million."
However, apartments yield 29 choices, ranging from modest 2-bedroom apartments for $600,000 to 3-bedroom apartments with city and park views.
The affluent Gold Coast (Broadbeach) area in South East Queensland is in exceptionally high demand. Evident from the lone auction listing of a house. However, high-rise apartments start at a very reasonable $600,000, to the predictable multiple-million-dollar beachfront panoramic listings. However, with 144 listings, the chances of finding an affordable, desirable apartment are good.
On the Sunshine Coast (Mooloolaba), you might feel spoilt for choice with 15 listings of houses, with the cheapest listed at 1.5m. However, with exactly double the choice of high-rise apartments in this suburb starting at 600k, this investment is a viable and affordable purchase option.
The Hidden Risks of High-Rise Living
It’s important to be aware of the risks associated with purchasing into strata and body corporate apartments, as they extend beyond structural issues. These corporations are run by people, and come with financial risks such as shared liability for injuries in common areas, ongoing maintenance costs, and strict adherence to strata rules.
Your high-rise unit's value and safety also relies on the behaviour of your neighbours. Water damage, fire damage, property damage, and nuisance owners or tenants can place your investment at risk.
While well-established high-rises can be an affordable option, considerations such as severe wear and tear, including concrete cancer and roof maintenance, as well as the quick-fix mindset of a strata or body corporate, can lead to costly repairs and tenant disruption.
When considering any property investment, a wise investor should also look into rope access inspection, along with records of rope access painting and rope access maintenance, as well as any necessary specialist inspections for peace of mind and thorough due diligence.
Daily Bulletin
