Apartment prices in Brisbane, Sydney and Melbourne remained flat in December according to the CoreLogic Home Value Index. For the year, Sydney experienced growth of 5.42%, Melbourne 8.36% and Brisbane 1.87%.
These figures include both existing and new apartments, so is not a true reflection of the state of the current new apartment market. We try to stay close to the market and it would certainly be true to say that both Brisbane and Sydney are a buyers market in general, and in particular for investment orientated apartments. Prime owner-occupier apartments continue to see demand from traditional downsizers and demand is quite strong, in particular for high-quality product in premium locations, but demand for investment apartments has certainly dropped over the past 12 months.
Melbourne continues to be somewhat resilient, although it is also a changing market. According to the Real Estate Institute of Victoria President Richard Simpson, 2018 looks to be all about affordability.
“Price growth has been widespread across Melbourne in recent years; however the city’s west and north continue to offer affordability. Given increasing buyer demand for areas that offer value, suburbs yet to reach the citywide median house price are best placed to experience strong price growth in 2018”, he commented on January 9th.