My Apartment Rose 30% In A Year, After Falling For 9 Years!

As the Paris Olympics drew to a close, I found myself reflecting on one of Australia’s most iconic moments from 22 years ago—Steven Bradbury’s unexpected and extraordinary victory. His triumph was a revelation, reminding us all that persistence, strategy, and being in the right place at the right time can lead to the most astonishing outcomes.?

Bradbury’s win wasn’t just about luck; it was about seizing the opportunity when it presented itself, a lesson that resonates far beyond the ice rink.

This same principle can be applied to the property market today.

It seems like every credible property expert on social media, whether on TikTok or YouTube, says the same thing:?

"I will never buy an apartment; it’s a bad investment."?

And yes, I get it. I don’t disagree in the long run.

But here’s the thing—there isn’t one universal formula for success in property investment. Sometimes, the best opportunities come from looking beyond conventional wisdom and embracing the possibilities that others are quick to dismiss. Right now, apartments represent one of those opportunities.

The housing market, after all, is a function of supply and demand.

Failed Feasos - A Chokehold on Supply

Across most capital cities, the cost to build an apartment is very close to, or even higher than, the price these apartments are currently selling for. Such is especially the case in more affordable markets such as Brisbane, Adelaide and Perth but rings true across the broader Australian market too.

Developers need to make a margin of at least 20%. When you factor in the costs of land, council fees, and the many other expenses associated with development, the feasibility just doesn’t add up.

This mismatch between cost and price means that developers aren’t going to be rushing to build new apartments anytime soon, especially in the affordable segment.?

How long will it take to resupply the market?

Even if developers across the country started building today, it would still take years for that new supply to reach the housing market given how long it takes to have a build approved and fully completed - between 18-36 months.

This lag worsens the current shortage, meaning pressure on existing apartment stock—will likely persist for the foreseeable future.

Sydney is in the midst of transformational zoning changes which aim to increase housing density and encourage new developments in key areas. However, while these changes are a step in the right direction, that only addresses one part of the equation.?

It's about whether people are willing and able to build.?

Construction costs are notoriously sticky—comparable to honey, gum, and duct tape.?

Given these persistently high costs, the feasibility of new apartment projects relies on a few key factors:

• A drop in interest rates
• Government subsidies and funding
• Increased apartment values

The process of getting a project approved, let alone completed, is incredibly time-consuming, adding further delays to addressing the supply shortage.

Elevated and Prolonged Demand:

For many buyers, particularly in high-cost markets like Sydney, the dream of owning a house is becoming increasingly out of reach.?

In this high interest rate environment, where borrowing power is limited, the relative affordability of apartments makes them an attractive choice for those looking to enter the property market.

With the Government First Home Guarantee capped between $600,000 and $900,000 across major cities, finding a house within these parameters is certainly difficult, if not impossible in some.

My Own Experience: A 50% Increase in 18 Months

Let me share a personal story. I owned two identical one-bedroom apartments in Brisbane.?

I sold one in late 2022 for around $320,000. Just recently, I sold the other one for $480,000. That’s a 50% increase in just 18 months. It’s the kind of return that makes me question why I sold that apartment in the first place.

My key takeaway??

This isn’t an isolated case but rather a reflection of the growing demand for existing apartments as new supply remains limited. With developers pulling back, the value of existing properties naturally rises.

What This Means for You

If you’re a first-time buyer, a younger Australian with a limited budget, or simply someone looking for a smart investment, apartments should be on your radar. The current market conditions are creating a window of opportunity where apartment prices are poised to continue outpacing houses, particularly in the next few years.

Now, I’m not saying that this will last forever. As the economic cycle changes, the feasibility of building new apartments will improve, and we’ll eventually see more supply. But that’s years away. For now, the opportunity is here, and it’s real.