The value of apartments purchased off the plan on Australia’s east coast could increase by as much as 15% by the time they are finished, with undersupply and population growth expected to push prices up, according to a new report.
The upbeat prediction came as real estate heavyweights McGrath and Knight Frank, which merged in 2024, announced a new dual-branded division to sell apartments.
John McGrath, chief executive of McGrath, said, “Given that many buyers of new projects come from overseas, including Australian expats, we found our partnership with Knight Frank very useful. So we have forged a new division, McGrath Knight Frank Projects, for our Project Marketing specialists.”
He attributed the success of the dual-branded offering to McGrath Research, which identifies the most appropriate projects for local, national and international buyers.
According to Michelle Ciesielski, National Head of McGrath Research, despite new build and lending challenges, nearly 76,000 new apartments are currently under construction for delivery by 2030 along the east coast, with another 20,000 actively marketed.
“Given persistent undersupply and solid population growth, many East Coast projects that break ground today could potentially see an average of up to 15% price growth by completion. Amid global uncertainty, buying new apartments in Australia remains a safe haven for locals, expats and international buyers with transparent ownership, reliable returns and added rental supply,” she said.
The new McGrath Knight Frank project marketing principal for Queensland, Owen Moore, said, “With international events coming to our shores such as the Rugby World Cup and Olympic Games, the global attention is going to transform some of Queensland’s major markets.”
The real estate giants also announced a multi-billion-dollar residential pipeline. The new project marketing team will combine over 50 residential sales and marketing professionals across the east coast of Australia and aims to double their circa 1000 sales in 2025 across Melbourne, Sydney and South East Queensland.
Australia also continues to allow international buyers to invest and buy new homes with the intent of adding to the rental pool, with non-resident buyers accounting for 5%-10% of all new home purchases in the past year.