Apartments set to rise beyond record prices
Over the last year we have watched housing prices continue to rise, with Melbourne’s median house price rocketing past $1 million in the June quarter. However, there is a new trend emerging, with apartments becoming increasingly popular as consumer demand hits an all-time high.
Like our European counterparts, apartment living is becoming more and more popular, with many buyers looking for both location and convenient features afforded by an apartment. Unlike houses and traditional units, apartment living offers the best inner-city locations, and is within close proximity to transport, retail, cafes, restaurants and bars. Life in an apartment offers added security and access to resort-style amenities such as pools, gyms, and saunas that aren’t available in traditional dwellings.
Caydon Sales and Marketing Director, Steve Williams, predicts the apartment trend will continue to rise. “Apartments have evolved from being a place people purchased for affordability reasons to becoming an option people are choosing. In many major international cities, apartment living is the number one dwelling choice, and they are now becoming the new Great Australian dream.
We’ve seen Melburnians increasingly drawn to the benefits of apartment living, with the demand for convenience and wanting to make the most of their free time driving this trend.
Domain chief of research and economics Nicola Powell, predicts that the price gap between apartments and houses is likely to narrow, due to priced-out buyers turning to apartments, and a projected shortage of units in Melbourne.
I’m actually quite concerned about the impact on housing demand once we see international borders reopen, Dr Powell said.
AMP Capital chief economist Shane Oliver has also warned that apartment prices will increase as soon as our borders open,
I think we could see a reversal of what the market was doing a few years ago. That will be an undersupply of units and an oversupply of housing pushed along by the demand from Home Builder, Dr Oliver said.
Approvals for units [being built] have fallen right away at the same time.
Get ahead of the market with an off-the-plan apartment from Caydon. Not only can you secure your home with a deposit from as little as 5%¤ , but the value of your home is locked in from when you sign your contract. This means that even if your property value increases during building, you’ll still pay the same amount you signed for when it’s time to settle.