29 August 2006
The shrinking size of Queensland households is fueling strong demand for single bedroom apartments.
Australian Bureau of Statistics projections show that by 2026, in excess of 60% of households across Queensland will contain two or fewer people.
And property developers are quickly catching on. The trend towards smaller households led leading Brisbane developer Citimark Properties to offer 56 luxury single bedroom apartments in its $120 million, 37-level, 178-apartment riverfront tower, "EVOLUTION".
"With Queensland, and particularly the Brisbane CBD, enjoying the largest population growth of all Australian states, the demand for single bedroom housing in Brisbane is growing stronger," said Citimark Sales and Marketing Manager, Rhianne Chester.
"At EVOLUTION, we offer a choice of two one-bedroom apartment types — with a city and river aspect or beautiful parkland views — which we believe will cater to this growing population segment," she said.
Resolution Research and Marketing Director, Diana Howes, believes that demand for one bedroom unit stock comes from two major sources:
- the effect of on going population growth and demographic change locally; and
- the emergence of niche populations within the market with particular needs such as international/interstate students, and short to medium term coroporate clients.
"It's no surprise that since 1994, the one bedroom unit market has outperformed the two bedroom apartment market, in terms of rental return, rental growth and capital appreciation and market demand," Ms Howes said.
"One bedroom apartments have displayed the greatest rise in median rents, which have grown by 7% per annum, more than 20% faster than the two bedroom unit market.
"In the two years to the end of the June quarter 2006, median weekly rents of one bedroom apartments in Brisbane's inner city grew 20%, this combined with the tightest rental market in the country augers well for continued strong rental growth of one bedroom product," she said.
Waterfront apartment sales in the Brisbane CBD have been even stronger than non-waterfront sales.
"Across the 2003 to 2005 period, CBD waterfront apartments recorded a median capital gain of 18 per cent, 4% more than non-waterfront CBD property.
"This strong growth looks set to continue as demand is sustained in the face of increasingly restricted supply," Ms Howes said.
Australian Bureau of Statistics figures released in February 2006 reveal that Brisbane was the fastest-growing capital city in Australia throughout 2004-2005, recording a 1.9% increase.
The Brisbane CBD is growing even faster — recording a massive 18% increase last year (around 1250 new residents). This translates into demand for around 750-800 CBD apartments.
In 2008, Evolution will become one of only six absolute waterfront residences in the city centre.
Residents in Evolution will be able to enjoy unique common facilities, including Brisbane's first residents-only Level-36 Sky Lounge, and a large recreation deck on Level 6.
The Sky Lounge, an area that offers spectacular uninterrupted views of the river and city skyline, will feature kitchen and dining facilities, as well as a pool table and entertainment system.
The Level 6 recreation deck will boast a lap pool, heated spa, fully equipped kitchen and BBQ facilities and seating, state of the art gymnasium, media room and library areas, and garden deck.
Resident's will also be able to take advantage of Evolution's other features including onsite management, concierge services, and a grand foyer entrance.
Background
Citimark is a multi award-winning, privately owned property group involved in residential, retail, industrial, and commercial projects throughout Queensland, South Australia, and New South Wales.
The company recently-completed $35 million luxury beachside resort — East on Byron in Byron Bay; and in 2004 completed the multi-award winning, $95 million 42-storey Felix Apartments, in Brisbane's CBD.
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