Urbis provides a synopsis on the state of Melbourne's apartment market
Consultancy Urbis has released their most recent data set on the overall health of Melbourne's apartment market.
Encompassing the second quarter of 2018, the report provides insight into prevailing trends and conditions that are having an impact upon the local apartment scene. Urbis asserts that Melbourne has gone against the national trend during the second quarter, showing positive signs after a pronounced lull.
The wider report analysed the sales results from 45 developments released for public sales, amounting to some 9,500 apartments.
More specifically, 1,929 new apartments were releases across Melbourne during the second quarter, with 309 sales recorded at an average price of $679,000. This result is an increase over the first quarter of 2018, albeit a minor increase.
It’s good to see sales activity having stabilised following the slowdown from a year earlier.
The results from this quarter’s survey indicate around 14% of available stock having sold during the period. By the end of the quarter, our surveys indicate 80% of stock sold within projects actively selling apartments.
Mark Dawson, Director Property Economics and Research
Urbis have also determined that the well diversified product offered for sale has contributed to Melbourne's price point of $679,000 which compares favourably to the national average of $713,000. Although certain apartment developments are primarily aimed at the more affordable end of the housing ladder, high-end apartments have also pulled their weight during the reporting period.
Considered the most popular high-end offering, the increased amount of low-rise developments targeting wealthy buyers in the city's inner eastern suburbs has risen dramatically in recent years as developers shy away from investor-driven apartment developments.
The two bedroom, two bathroom apartment type entrenched itself as Melbourne's most popular, accounting for 43% of apartments sold across Melbourne during the second quarter.
This has been a growing trend over the past few years as annual sales figures show.
A year ago, two bedroom, two bathroom product made up only 33% of sales. We expect this trend to continue, as they appeal to the owner occupier market as well as investors.
Mark Dawson, Director Property Economics and Research
16 new apartment developments were launched during the second quarter, accounting for the aforementioned 1,929 new apartments which hit the market. Only 429 apartments were released for sale during the previous quarter.
On the flip apartment approvals continue to slide after reaching historically high levels over recent years; 2,278 apartments found approval during the second quarter.
Consequently Urbis has also noted that issues may arise with the adequate delivery housing supply in key suburbs in the next 5 years.