Toorak strongest unit price growth suburb but South Yarra weakest: REIV

Nicola TrotmanApril 17, 2013

Toorak units and apartments experienced the strongest quarterly price growth of 16.1% while South Yarra was the weakest performer with a price drop of 13.0%, according to the latest data released by the Real Estate Institute of Victoria.

The median price for an apartment or unit in Melbourne is $456,000 compared to $449,500 in the December quarter.

“Demand for units and apartments were more subdued with a 1.4% increase in the quarter to a median price of $456,000. A factor in this market is the increased supply in the inner city apartment stock,” says REIV chief executive Enzo Raimondo.

Raimondo says the strongest demand for units and apartments were found in Toorak, Kensington, Kew, Cheltenham, Boronia and Bayswater.

Toorak had the strongest quarterly growth of 16.1%, taking the December median price of $618,000 to $717,500 in the March quarter.

Kensington also had a strong quarterly growth of 13.5% with a median unit price of $504,000.

Kew’s median unit price in the March quarter grew 11.8% to $614,750.

Cheltenham experienced a quarterly apartment price growth of 10.6%, Bayswater experienced a quarterly growth of 8.4% and Boronia experienced a quarterly price growth of 8.5%.

Meanwhile the city fringe suburbs recorded the greatest price drops this quarter.

South Yarra experienced the greatest unit price drop of 13.0%, taking the medium price to $520,000 from the December quarter price of $598,000.

Elwood followed close behind with a price drop of 12.9% and Carlton’s medium unit price dropped 12.5% this quarter.

Hawthorn’s medium price dropped 10.5% and the Melbourne CBD dropped 7.9%.

Frankston is the most affordable suburb to purchase a unit or apartment with a median price of $270,000 -  a quarterly growth of 2.7%.

Robert Larocca from REIV says in each suburb, the unit market caters for two diverse types of buyers.

Larocca says the median for this class can and does vary in accordance with the balance of properties sold each quarter. 

“In the case of Toorak, 27% of units sold in the December quarter were priced of $1 million, and in the March quarter that rose to 40%.

Larocca says this is not because more were sold but because fewer of the affordable walk-ups on main roads were sold.

“Clearly the million dollar unit market in this suburb remains in strong demand.”

“These suburbs are not unique, Carlton also has a great diversity with a lot of small student accommodation and very expensive units.”

A two-bedroom, one-bathroom unit on Grange Road in Toorak is listed for sale with an asking price of $650,000.

Featuring a modern kitchen with parquetry floor, the property (pictured below) is listed by Carly Fetter of Bennison Mackinnon Armadale.

reivapril18one

A one-bedroom, one-bathroom apartment in a River Street complex is listed for sale for $430,000.

The designer apartment (picture below) features a terrace and one secure car space.

reivapril18two

It has been listed for sale by Phil Butcher from Castran and Gilbert.

Suburbs that recorded less than 25 sales for the quarter were not included in the analysis.

Nicola Trotman

With a penchant for the written word, Nicola has built a career doing just this – now Creative Director at thriving Melbourne-based PR agency, Greenpoint Media.

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