High-density living is on the rise again as new opportunities emerge, changing the state of the apartment market.
Unit prices increased another 1.2 per cent in April, and 4.2 per cent during the quarter, with just five apartment markets—from 59—recording a decline for the month of April.
The Australian Bureau of Statistics also indicated the market was improving with approvals increasing at the highest rate since 2017.
“Together with the rapid ageing of the population, changing household preferences and affordability pressures, opportunities will undoubtedly arise for the residential apartment sector,” Charter Keck Cramer’s national director of research and strategy Rob Burgess said. “Understanding these dynamics and how they impact the respective markets will be fundamental.”
Burgess said Covid-19 continued to generate uncertainty as the effectiveness of traditional drivers of demand remains unknown for the foreseeable future.
“The short-term effect of the pandemic has seen some apartment markets, in particular Melbourne, plunge towards oversupply,” he said.
“However, as the uncertainty around the extent and timing of likely future demand—including the return of international students—continues, the challenges facing the Australian apartment market, together with the housing market overall, are likely to grow.”
ABS director of construction statistics Daniel Rossi said the apartment market was the major contributor to the growth in building approvals.
“The total number of dwellings approved in March was the second-highest recorded, only exceeded by the November 2017 result,” Rossi said.
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