Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Sunday, 2 April 2017

New Farm...busy

Granted it's the start of school holidays.

And then there was the schools having two days off for the Cyclone, which somewhat was generous for this part of Queensland - it was sunny with blue skies on Friday - though the local kids naturally seemed rather happy with the result. 

Regardless, by heck it's been busy around these parts of late. 

The number of families in the park and play area yesterday would have to be seen to be believed.

I was just wondering to myself yesterday whether these are the early signs of all these new inner Brisbane apartments actually being populated, and by families as well as couples. 

The area around Newstead gasworks has felt a bit the same in recent weeks, even in the evenings. 

Clearly there is lots of apartment stock still for rent - and even more under construction - but perhaps renters are steadily gravitating towards the new stock. 

Source: SQM Research

Apartment completions are expected to fall in 2018 and 2019, but this trend towards inner city living will in time have a number of consequences, including increasing competition for popular schools and making driving to work a less attractive choice. 

Over the near term the glut of new rentals will pull rental demand away from the tired old rental apartment stock (and Brisbane has plenty of that).

No strong conclusions here, but definitely a trend worth watching. 

Tomorrow's figures will confirm an ongoing drop in Brisbane apartment approvals, a tacit admission that construction has gotten ahead of demand.