The market is changing. We have seen increasing appetite and encouraging performance in projects in the middle ring. As infrastructure investment unlocks new areas, we foresee the market will continue to spread out in terms of shape and size. Therefore, we have expanded our coverage to capture the emerging medium density hotspots.
Prices increased with a weighted average of $666,000 across the ten precincts, in comparison to $645,000 last quarter. The Western Corridor recorded the highest weighted average sales price at $1.1 million driven by a concentration of high-end owner-occupier sales, while Melbourne’s central precinct averaged $702,000. The high proportion of 2-bedroom and 3-bedroom product (60%) has bumped the price up in the Western Corridor whilst the larger proportion of 1-bedroom products in the Central precinct (37%) reflects the lower weighted average sales price of $702,000.
Two-bedroom, two-bathroom apartments came out on top in the March 2018 quarter, accounting for 43% of sales. This product type was the most popular across all precincts except the Northern Corridor which favoured 1-bedroom, 1-bathroom apartments that offer a parking space (38%) over two-bedroom, two-bathroom (32%).
Two surveyed projects sold out this quarter and a further twenty surveyed projects are over 90% sold.
Fifteen new projects launched this quarter with a total yield of 1,586 apartments. After a stuttering pipeline in recent quarters, fourteen projects are flagged for official launch next quarter, yielding 2,121 apartments.