Once again new supply remained slow in Inner Melbourne, helping developers move existing stock. Four new projects amounting to 1,828 apartments launched in Inner Melbourne this quarter, compared to five new projects amounting to 1,119 units in the previous quarter. Currently, 47% of actively selling projects are still in a presales stage.
Across Inner and Middle Melbourne, two-bedroom, two-bathroom apartments were the most popular product type in the December 2017 quarter making up 47% of total sales. One-bedroom apartments with a car park were the next most popular product type making up 23% of total sales. Both of these product types increased from the previous quarter, with fewer two-bedroom, one-bathroom and one-bedroom, zero car park apartments transacting compared to the previous quarter.
Two-bedroom, two-bathroom apartments were the most popular product type in the Inner East, Inner South, Inner West and middle-ring precincts. However, the Inner North precinct recorded a majority of one-bedroom apartments with a car park and the Central precinct recorded the majority of sales of one-bedroom apartments without a car park.
Regarding future supply, the volume of apartments approved in the quarter dropped to its lowest level since early 2014. Whilst the quantum of potential supply is greatest in the Central precinct, less than one-third of this is in presales, indicating the pipeline will continue to smooth out as it has continued to in recent years.