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Bank of Queensland boss flags concern with Brisbane unit market but rentals show signs of recovery Bank of Queensland chairman Roger Davis has indicated his company will continue to keep apartments at an arm’s length because the property market continues to look risky in the short-term. It comes as some developers report surges in demand for rental properties, pointing to early signs of recovery. Speaking at the bank’s annual general meeting on Thursday, Mr Davis said cooling markets on the east coast of Australia were being watched closely by financial institutions, which were pleased a housing bubble did not look likely to burst. Brisbane’s unit market is still causing some concern. Photo: Supplied “BOQ takes some comfort from moderating east coast housing prices and risk conditions, especially in Sydney, and sees no evidence of any systemic weakness in its housing portfolio or substantive increases in its mortgage arrears,” Mr Davis said. But the national apartment market, and Brisbane as a whole, offered little comfort, however. “We do remain wary of conditions in the residential apartment market, especially in Brisbane, where the RBA is warning that this financial year is “crunch time” given the oversupply, low rental increases, tightening credit conditions and ongoing targeted macroprudential regulations,” he said. DevCorp’s Lincoln on the Park development has had unexpected demand from renters. Photo: Supplied Devcorp recently completed its Lincoln building in Stones Corner, and was seeing a surge in renter demand. “We’ve got a waiting list for the two bedders at the moment,” property manager Fiona Nichols said. “We were concerned we’d almost landed in no man’s land because the building was done early.” Lincoln building prices are tracking ahead of Brisbane’s median; about $550 for a two-bedroom apartment compared to a city median of $370.
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