Apartment sales in the sub-$350,000 bracket are expected to have improved the most since the start of this year in figures to be released by the Real Estate Industry of Queensland (REIQ) next week.

Building approvals have been trending down since the GFC, which was to be expected given the restricted access to finance, with a brief recovery taking place over 2010, the REIQ said.

This is likely to result in commencements and completions holding steady in coming quarters.

For Brisbane and surrounds, the numbers of apartment sales dipped over the December quarter, however activity was up on that recorded during the March quarter of last year.

“Similar to the house sales market, it is expected that the REIQ’s March quarter unit and townhouse figures, released on June 8, will show a pick-up in activity for the Brisbane area on the back of increased first home buyer and investor activity,” REIQ chief executive Anton Kardash said.

“Typically targeting the affordable end of the market, it is expected that sales in the sun-$350,000 bracket will have improved the most since the start of this year.”
For the year ending 2011, REIQ figures show a number of Brisbane suburbs recording healthy increases in new apartment sales activity.

The top performer was Kelvin Grove, which recorded about 120 preliminary apartment sales during 2011 due to the release of a number of new developments in the area.

“According to the REIQ’s suburb profiles on reiq.com, Kelvin Grove has become a popular suburb for a range of people wishing to live close to Brisbane’s CBD, Queensland University of Technology (QUT) and the Royal Brisbane Hospital,” Mr Kardash said.

“The suburb’s proximity to the city makes it a popular residence for young people who either study at QUT’s Kelvin Grove campus or commute into the city centre for work.”

Another strong Brisbane performer was West End, which recorded about 130 preliminary apartment sales last year.

Over recent years, as urban renewal projects in areas such as Newstead and New Farm have wound down, Brisbane City Council and developers have increasingly been looking towards the old industrial areas of West End to help house the future growth of Brisbane.