From a similar sample, Melbourne projects delivered more than double the sales volume in Q2 2019 than in the previous quarter (Q1 2019).
In this edition of the Melbourne Apartment Essentials, we analyse the sales and supply data captured in Q2 2019.
From a sample of 58 projects surveyed in Q2 2019 on average 12 per cent of available inventory was sold in the quarter, getting back up to levels seen a year ago, prior to two quarters at or under 10 per cent.
“While national conditions remain calm, an increase in pace of activity, along with wider indicators, provides a glimpse that the market could be edging past the bottom,” said Mark Dawson, Director of Property Economics. “We will be watching the extent and speed at which this plays out across the country in the coming quarters, and what it means for the year ahead.”
Up against the cool breeze of macroeconomic indicators and affordability challenges the weighted average price crept up to $653,000 for the quarter.
The role of apartments remains clear in the affordability debate, as while buyers continue to pay a slight premium for new stock, the average apartment in the inner and middle ring can still come in at under half the median house price for the same area.
Time will tell whether the improving sentiment post-election and adjusted mortgage sector allows sales momentum to build through spring.
Over 1,100 apartments were approved in the inner and middle ring this quarter. Though an increase from the previous quarter which saw 740 apartments approved, this is down from the average quarterly approval volume of 4,000 seen throughout 2018 and extends the trend of slowing future supply since the middle of 2017.
The Government has announced changes to the planning rules for apartment developments, further developing the Better Apartments Design Standards introduced in 2017. A discussion paper is currently out for public consultation exploring: Green Space, Facades, Wind Impacts, Street and Neighbourhood Quality and Managing Construction Impacts. The window for submissions closes on 27 September with Standards planned to be finalised later in 2019.
While we watch with interest what happens to supply, sales and prices in the year ahead, we will continue to monitor what impact new standards have on these ever changing conditions.
Contact our expert team to find out more.