Brisbane apartment oversupply: Not if you're buying a penthouse

Property analysts have dished out dire warnings for the Brisbane apartment market but at the top, it’s a very different story.

Brisbane prestige agents say when it comes to multimillion-dollar apartments, demand from wealthy buyers is outstripping supply.

Meanwhile, in a show of confidence for the top end, developer Ideal Property Australia is charging ahead with construction on its $70 million Toowong-based luxury riverfront building, Banc Apartments.

McGrath New Farm agent Sherrie Storor says penthouses are particularly sought after, but luxury apartments are performing just as well, citing her recent $3.22 million sale of 39 Castlebar Street, Kangaroo Point, as an example.

“Buyer demand for penthouses is growing in inner Brisbane,” she says. “And it’s not hard to see why. They’re spacious, they’re luxurious, they’re private, and they offer a great lifestyle with security, low maintenance and proximity to amenity. And to top it off, many have spectacular views.

“Over the past few months I’ve noticed an increase in buyer enquiry for penthouses but low supply means sellers are achieving solid prices.”

Ms Storor says penthouses are predominantly bought by owner-occupiers, particularly empty nesters, with most wanting penthouses with four bedrooms or three bedrooms with an office, as well as a large living area, are particularly sought after. 

The highest price paid for a penthouse in Brisbane so far this year is $6.15 million — a “next level” sky home at New Farm — but last year’s record $8 million purchase made by Therese Rein and Kevin Rudd is yet to be eclipsed.

Christine Rudolph of Ray White New Farm last month sold 149/37 Harbour Road Hamilton in the Infinity building, which shares the same view as its famous neighbour Lorna Jane Clarkson.

She says that when it comes to luxury apartments and penthouses, it’s a very different story to the doom and gloom of the regular unit market; generous floor plans and excellent views are hotly contested amongst buyers.

“We’ve been seeing this trend where buyers will pay more for boutique owner occupier apartment buildings,” she says.

“Despite speculation of an oversupply in the Brisbane apartment market, confidence for premium product is so strong — and I only see that continuing.”

Ideal Property, the developer behind Banc Apartments, expects the 15-level tower to come out of the ground around mid-year.

Director John Li says the timing is right to push ahead with the project: “There evidently is solid demand – for the right type of property,” Mr Li said.

“Banc has been successful because it represents a return to the golden age of riverfront luxury development, with apartments equivalent in size to an average home, complete with top shelf finishes and panoramic views that can never be built out.”

Of 33 luxury residences, 65 per cent are already sold; Banc’s remaining apartments include a garden home with a private riverfront terrace and three bedroom river homes and sky homes with prices starting from $1.39 million.

Those in the market for a penthouse-style residence can secure the full-floor, 455 square metre Sky Mansion atop the building, with the option to work with award-winning WMK Architecture and SJB Interiors to customise the abode at no additional cost.

Ideal Property has recently released a second full floor option as an alternative to the Sky Mansion, priced from $4.45 million.