Many apartment markets are seeing major price increases: Hotspotting's Terry Ryder
EXPERT INSIGHT
The exponential growth in prices in the past quarter isn’t confined to the housing market – many apartment markets are also experiencing major uplift.
In putting together the upcoming Winter edition of The Price Predictor Index, I have been updating the median price data for every notable suburb and town in Australia, changing the figures from three months ago to the current data.
In so many cases, the uplift has been quite startling, indicative of the once-in-20-years property boom sweeping the nation. When median prices are showing double-digit increases in just three months, you know something exceptional is afoot.
A few weeks ago, I listed some examples of rises for median house prices in locations across the nation. But it’s also occurring in many apartment markets – not as prevalent, but nevertheless noteworthy in individual instances.
On the Redcliffe Peninsula in buoyant Brisbane, several suburbs are recording big rises in median prices for apartments. The median price in Scarborough has increased from $480,000 to $510,000, while Redcliffe has jumped from $385,000 to $425,000 – a rise of 10.5% in three months.
The median unit price in the Brisbane northside suburb of Newmarket has risen 16% in the past quarter, from $400,000 to $465,000.
In Perth, examples of big increases in median unit prices in three months include Rockingham ($210,000 to $250,000), Maylands ($285,000 to $315,000), Dianella ($270,000 to $330,000), Fremantle ($475,000 to $510,000) and Joondanna ($310,000 to $385,000).
The Rockingham rise was 19%, Dianella jumped 22% and Joondanna’s increase was 24%. But the biggest leap has been in Mosman Park, up from $285,000 to $385,000 – an increase of $100,000 or 35% in the past quarter.
What, you may wonder, is going on here?
Adelaide has some notable examples. Norwood is up from $505,000 to $570,000 (13%) and Prospect has risen from $380,000 to $445,000 (17%). So does Canberra, including the 12% rise from $595,000 to $665,000 in Barton.
In Sydney, the median unit price in Fairlight has leapt from $1,425,000 to $1,560,000, Freshwater has gone from $890,000 to $940,000, Double Bay is up from $1,450,000 to $1,510,000, Neutral Bay from $955,000 to $1,050,000, St Ives from $1,020,000 to $1,120,000, and Kogarah from $685,000 to $785,000 (up $100,000 or 15%). Rose Bay has delivered one of the most remarkable results: its median apartment price has increased from $1,475,000 to $1,600,000 in three months – a rise of $125,000.
Melbourne has many notable instances, including Berwick (from $530,000 to $595,000), Beaumaris ($935,000 to $1,100,000) and Albion ($375,000 to $435,000).
There are lots of examples also in regional Australia, notably on the Gold Coast, the Sunshine Coast and the Central Coast, but also in regional cities like Newcastle.
One school of thought suggests we may see more big increases in apartment prices, because buyers priced out of the housing market in their favoured locations are switching their attention to more affordable apartments.
