Micro unit prices soar as Qld’s rental crisis continues

Queensland’s rental crisis has created a surge in demand for small units, with some being listed for upwards of $8000 a square metre and others at prices equivalent to houses in the outer suburbs.

One-bedroom and studio apartments in Brisbane’s CBD are fetching more than $8000 per square metre.

Queensland’s rental crisis has created a surge in demand for one bedroom and studio apartments, with some being listed for upwards of $8000 a square metre and others on the market at prices equivalent to houses in the outer suburbs.

And they are being pitched to investors looking to cash in on the state’s rental woes, buyers looking to join the short-term accommodation cash cow and desperate buyers priced out of their great Australian dream of owning a house.

“Huge potential $$ with ABNB,” one listing says, while another touts the unit is currently rented for $340 a week but up to $400 is possible.

New data shows that the median unit price in Greater Brisbane has increased 5.7 per cent in the past 12 months, rising from $440,000 to $465,000.

It has increased even more in some Queensland regions, up 21.3 per cent in Wide Bay, Cairns (+17.5%), Gold Coast (+12.8%) and the Sunshine Coast (+9.4%).

Inner CBD median unit prices have come back, with a one-bedroom apartment typically going for $330,000 and rented for $450 a week.

But the biggest change in prices has been recorded for two bedroom apartments outside of Greater Brisbane, which would include major tourist centres such as the Gold Coast and Sunshine Coast.

A 22 sqm studio apartment in Brisbane's CBD is listed for offers over $185,000.

The cheapest one bedroom apartment on the market in recent weeks, excluding retirement and over 50s complexes, is a 19sq m studio apartment on Margaret St in the city.

It was listed for $165,000 which equates to $8684 a square metre, and is now under offer.

A one-bedder in Uni Lodge is listed for offers over $175,000 and is being pitched to first-time buyer investors and owner-occupiers, while a 52sq m dated studio apartment in Kangaroo Point is listed for offers over $275,000.

If the price per square metre for the cheapest available unit was applied to the average Aussie house, which is around 230sq m, it would cost close to $2 million.

But there are even one bedroom apartments on the market for north of $700,000, or roughly the equivalent of a house in suburbs such as Springfield, Zillmere and Bald Hills.

A 63sq m apartment in the Brisbane Skytower is listed for $764,750, while a one-bedder in Silk One Residences is on the market for $725,000.

And there appears to be no shortage of buyers wanting a piece of Brisbane’s sky high residential market.

A one-bedroom unit in the Oxley + Stirling complex at South Brisbane recently sold for $555,000, roughly the equivalent of a house in Boronia Heights and Yarrabilba.

And a one-bedroom unit with a 105sq m floorplan recently sold under the hammer in New Farm for $680,000.

There were six registered bidders for that ground floor apartment.

And in January, an 87sq m one bedroom apartment in the Abian complex sold off-market for $1,088,600.

The Place Insights Report shows just how strong the apartment market in Brisbane has been over the past year.

Shelley Fox has bought a one-bedroom unit in West End after moving from a house in Acacia Ridge. Picture David Clark

The median unit value, taking into account all units, in Highgate Hill jumped 43.5 per cent, up from $535,000 in December 2021 to $767,500 in December last year.

Double-digit price growth was also recorded in Bulimba and Balmoral.

But it wasn’t just in the inner-ring suburbs where prices soared.

The median unit value in Bracken Ridge rose 36.8 per cent to $465,000, with Tingalpa, Carina, Richlands, Taigum, Doolandella and Runcorn also posting median price rises north of 23.9 per cent.

Place Kangaroo Point agent Corey Pugliese said there was “massive demand” for one bedders in particular.

“Rents are going up and we are hearing from renters who have had a chat to the bank and realised they can just buy a one-bedder,” he said.

“They think, why pay off someone else’s mortgage when they can pay off their own.”

But Mr Pugliese said supply was a big factor, and it was creating significant competition.

“Back in December, there was something like 31 one bedders on the market,” he said. “Now, almost all of them are under contract.”

Custodian managing director James Fitzgerald said the average Australian lives in more than 100sq m of living space, whereas many other developed countries that number is much less.

“The solution to affordability is always going to be density.,” he said.

“We’ve already seen the solution in more populated countries and cities.

“It comes from a cultural shift, an increase in multigenerational housing and more innovative use of spaces

Elsewhere, a one bedroom studio apartment is for sale at Couran Cove on South Stradbroke Island for offers over $90,000, while a studio unit at Nelly Bay on Magnetic Island has a cash contract after being listed for $65,000.

While in Cairns, Townsville, Mackay and Gladstone, some one bedders are listed for under $100,000.

On the Gold Coast, the cheapest one bedroom apartment, excluding holiday and student only listings, is listed for offers over $236,000 in Surfers Paradise.

The cheapest one bedroom unit on the Sunshine Coast is $169,000, but there is a catch. This one is a manufactured home in a holiday park.

The Sunshine Coast is also home to the highest priced one bedder on the market right now.

Located at Noosa Heads, the 117sq m renovated unit is listed with a price guide of $3.125m.

sqm unit in West End for $465,000 and a one bedder in South Brisbane for $555,000.

Originally published as Micro unit prices soar as Qld’s rental crisis continues