New apartment tower: what it means for the local market

A 28-storey residential tower approved for a prime corner site on Grey Street in South Brisbane will add 312 apartments to the inner-city market by late 2028, marking one of the most significant supply injections in the precinct since the pandemic boom.

The development, which straddles the border between South Brisbane and Southbank, includes 218 one and two-bedroom apartments, with completion expected to coincide with the final infrastructure push toward the 2032 Olympic Games. Preliminary pricing indicates entry-level units will start around $485,000, a competitive point in a market where median apartment prices across inner Brisbane now hover near $650,000.

For investors and first-home buyers, the implications are mixed. The project's scale—coupled with three other major apartment projects currently under construction within a 2km radius—suggests rental yields in the immediate vicinity may moderate as supply catches up with demand. Estate agents tracking South Brisbane report rental returns have tightened to 3.2 per cent gross, down from 4 per cent two years ago.

However, local agents say the tower's 220 car spaces and proximity to the South Bank Parklands, cultural institutions, and the proposed Olympic precinct amenities will underpin resilience. "The Olympics infrastructure spend is real," says one Southside agent. "Transport links, parks, and services are being enhanced regardless of market cycles."

The development also includes 1,800 square metres of ground-level retail and dining, addressing a consistent shortage of quality hospitality space in the area. Local traders in nearby East Street and Grey Street report rising foot traffic from interstate migrants drawn to Brisbane's relative affordability compared to Sydney and Melbourne.

Broader Brisbane data shows median apartment prices have held steady around $520,000 across the wider market, with the Queensland state median for all property types at approximately $780,000. The South Brisbane project sits within this context of steady growth driven by Olympics-linked infrastructure, population inflow, and limited large-scale supply additions in the CBD fringe.

Planning documents reveal the site's previous approval for a smaller, 18-storey building was shelved in 2024, suggesting developer confidence has returned. "The market's absorbing supply better than pessimists predicted," the agent adds. "But timing matters. Late 2028 completion could mean these apartments hit a market very different from today's."

Buyers and investors should factor in the broader pipeline: three additional towers approved for the Grey Street corridor alone will deliver roughly 600 apartments by 2029, reshaping local vacancy rates and rental competition.

This article was compiled by AI from the sources linked above and screened before publishing. See our editorial standards.