We expect to see fewer project launches which will ensure the market maintains a healthy balance of supply and demand.
Melbourne Apartment Essentials recorded almost 500 sales from 47 projects in the March 2017 quarter. Four new projects amounting to 1,471 units launched, compared to 14 developments at 2,878 units a year previously.
Mr Dawson expects project launches, and sales volumes, to drop back as the market continues to self-regulate. “We expect to see fewer project launches which will ensure the market maintains a healthy balance of supply and demand.”
“Of the projects we monitor, 82% of stock has been sold. At this stage of the market it is not about a large reduction in sales or drop in price, but a change in the type of sales we are seeing and where apartments are selling.”
Mr Dawson adds that “after a more subdued quarter in inner Melbourne, we maintain our expectation of a boost in activity prior to the 1 July stamp duty changes.”
Two-bed, two-bath a firm favourite
Despite fewer sales in inner Melbourne, the weighted average sale price increased to $706,391, a $44,476 increase compared to the December 2016 quarter. This increase was driven by the volume of two-bedroom product selling.
Two-bedroom, two-bathroom product is still a firm favourite, recording 35% of total sales across the market, an increase from 29% in the previous quarter. Mr Dawson said this result was in line with current market trends, as purchasers look to high rise living as a place to call home and not just a place to live or invest.