As Melbourne Cup week becomes a distant memory, we refer to the latest Urbis Apartment Essentials to ponder what sort of hangover is emerging in the Melbourne apartment market.
After the excitement of the recent real estate race, we can see that as a group of high rollers continues to chase trophy homes, others are returning to a more budget conscious way of living as the purse strings are tightened by lenders.
This is manifesting itself in 7% of new apartment sales exceeding $1 million, while most of the faster selling projects achieved a price point below $700,000. Overall, the weighted average price in Melbourne was $601,000 in Q3 2018, having remained in the $600,000s for two years.
Mark Dawson, Director at Urbis, advised “Over the last year, sales have increased, but volume has remained steady with 330 sales from a sample of 47 developments in Q3 2018, compared to an average of 300 per quarter in the last 12 months.”
Moreover, sales activity is being drawn to the value end of the market with the weighted average price of $601,000 in Q3 2018 compared to an average of $649,000 in the last 12 months.