Is Buying a Unit in Brisbane a Good Investment?
It’s a popular debate… is buying a unit in Brisbane a good investment? There is a lot of discussion around this topic, but it is important to highlight that it can be a mistake if an investor has not done their research and due diligence.
Buying a unit in Brisbane seems like a no-brainer for some property investors due to the attractive cash flow benefits. Units also have a much lower entry price point. And, they often provide people with the desired lifestyle, especially when the units are in popular precincts.
We are going to touch on some risks associated with purchasing a unit in Brisbane so you know what to watch out for.
1. Oversupply Risk in Brisbane Unit Market
Why Oversupply Happens in Brisbane’s Unit Market
Buying a unit in Brisbane has been a strong discussion point for some time now. The issue that investors will uncover when purchasing a unit in Brisbane is that the Brisbane unit market moved into a state of oversupply following the peak rate of unit construction in 2016, which meant there was a huge supply risk for several years.
Areas like Newstead, West End, Chermside, Mount Gravatt, and Coorparoo have all gone through physical growth spurts where large unit developments have been constructed, replacing the lower-density housing that once stood in its place.
This happened off the back of a change in the Brisbane City Plan in 2014. At that time, a lot of land use zoning changed to make way for higher-density living. The consequence of this change was that developers moved in very quickly, and the completed unit developments were being delivered to the market very quickly and in high volumes, all at once.
How Oversupply Affects Unit Values and Rents
Oversupply in any one area can affect old and new apartments. From an investment perspective, trying to rent a unit when there are 300 other identical units to yours can affect the performance of the investment. Vacancy rates tend to rise, and this puts downward pressure on rents.
You may have a property that you purchased brand new four years ago, however, due to brand-new developments being constructed nearby since, selling your asset can be tricky when you are located in an older complex and competing against brand-new stock.
Before you consider buying a unit in Brisbane, you must assess the current state of supply and also what the potential for future supply in the immediate area looks like. Not all areas are created equal. However, there are some very good pockets within the city where lucrative gains are still possible.
2. Depreciation Risks and Capital Growth in Brisbane Units
When purchasing a brand new unit you do get some great depreciation benefits. However, what you will find is that the value of the unit often depreciates at a faster rate than the capital growth appreciates. This resulted in many property investors who purchased brand new units in Brisbane during the peak supply period around 2016, realising a loss when the time came to sell.
There have been many horror stories of properties selling for over $100,000 less than what they were originally bought for due to the depreciating condition of the property, and the new supply of brand-new properties for buyers to choose from. The greater the supply, the less scarce the property is, and this puts downward pressure on prices.
Like any market, capital growth in Brisbane’s unit sector is ultimately driven by the balance between supply and demand at any given time. Since the peak construction period in 2026, new unit development has slowed significantly, while demand has continued to rise, fuelled by shifting affordability and lifestyle preferences. This imbalance has underpinned the strong growth we’ve seen in Brisbane’s unit market between 2023 and 2025.
When you purchase a property with a larger component of land (for example, a house on its own block or a unit in a smaller complex on a larger block of land) the land is the component that experiences the capital growth. In the case of a unit, you are increasing your downside risk by only owning a very small share of the land that the complex sits on. In some instances, hundreds of units can be constructed on multiple levels. In this instance, the proportion of land owned by an individual unit holder is minimal.
Higher density unit complexes often increase the risk of lower capital appreciation (which comes from the land component) and increased depreciation (due to these buildings often being newer). It is always important for investors to understand the purpose behind their purchase and consider the risks as well as the potential benefits when buying a unit in Brisbane.
3. Risk of Buying Off-the-Plan Units in Brisbane
The Marketing Trap of Off-the-Plan Units
When thinking about investing in a unit it is very easy to get drawn into buying off the plan. Many developers need to meet pre-sales targets to obtain funding before construction commences. Generally, developers create a targeted marketing campaign to draw buyers in. Amazing quality images along with the promise of fantastic resale value and high-yielding benefits are the focus. It is not uncommon for other bonuses to be thrown in too… but whatever the bonus may be, it is simply built into the purchase price!
Common Issues with Off-the-Plan Developments
Yes, we have seen this before when people are buying a unit in Brisbane. Many investors have been burnt by purchasing off the plan for a number of reasons. There can be significant changes in the market between when you purchase the unit and when it is due to settle. You may select a location where your unit complex might be the only development around at the time you enter an off-the-plan contract. However, when completion comes up (which can sometimes be a couple of years later or more) you find that the complex may be surrounded by other brand-new developments. This can cause the value of the unit to drop, once again due to oversupply issues.
You are usually paying a premium price for off-the-plan properties. Remember, off-the-plan sales have not been tested in the market. Also when you buy brand new, there will be a lot of hidden costs. You can read about 5 Traps to Buying Brand New in a previous blog post.
If a developer is offering attractive incentives with your purchase, chances are you are paying for those in the purchase price.
How to Protect Yourself When Buying Off the Plan
Another scary thought is not receiving the product you were promised and what you paid for. Some developers will switch out quality products for cheaper alternatives. Because the property is not built yet these changes are normally made after you have committed to the purchase. Good project management and understanding the complexities of off-the-plan contracts can avoid you getting caught out in this regard.
4. Built-Out Risk When Buying a Unit in Brisbane
So, you may have just secured a property that has city views!
You can’t wait to show your friends and family.
Imagine the years and years of Riverfire and city lights to watch.
Then you realise that a building is going to be built right in front of your view! This is common in the higher-density areas of Brisbane. It is definitely something that buyers need to be aware of when buying a unit in Brisbane. There are searches that can be completed to check what development is approved, or likely to be built on adjoining lots or in the line of a view. That’s where getting professional assistance helps.
4. Final Thoughts on Buying a Unit in Brisbane
Buying a unit in Brisbane can be rewarding, but it is crucial to understand these potential risks before making your move. By doing thorough research and seeking professional guidance and services, you can make smarter, safer property decisions and avoid costly mistakes.
If you are considering buying a unit in Brisbane and want expert guidance, reach out to our Streamline Property Buyers Agent team today. We can help you identify quality opportunities and minimise your risks.
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