Melbourne inner ring apartment market in recovery: PRD Research
There are signs of recovery in Melbourne's inner-ring apartment market as a shift back to living in the city is becoming evident, according to PRD Research.
Investor confidence will be restored as rental demand is starting to increase in the inner-ring, and will be further pushed up with the opening of international borders, it noted.
Inner-ring vacancy rates are showing signs of improvement, declining by 3.4% annually.
The Q4 2021 median rental price in the inner ring is $410 per week, up $10, equal to the middle ring's $410 per week and slightly higher than the outer ring at $400 per week.
Three bedroom units in the inner-ring fetched the highest rent at $695 a week while 1 bedroom units in the inner and middle rings are the most affordable at $320 a week.
The report noted the inner-ring median was $586,000, it was $665,000 in the middle suburbs and $658,000 in the outer ring.
The report calculated the 2017-2021 price growth in the inner ring was 3.2% (+$18,000).
The middle ring growth was 12.7% (+$75,000) with the growth highest in the outer ring - up 14.4% (+$83,000).
The time to sell the establishment apartment has declined in the past 12 months which shows signs of recovery with little difference in average days to sell between all rings at around 50 days.
The Melbourne market update report divides the city into the inner-ring (0-5km from the city), middle-ring (5-10km from the city) and outer-ring (10-20km from the city).
It noted middle and outer-ring unit prices continue to outpace that of the inner-ring, with the middle-ring now the most expensive.
But inner-ring unit median prices are starting to see higher growth "which is great news for vendors looking to sell in this current market," it said.
The inner ring off the plan inner city offerings include the Carlton project, Encompass.
The pricing at the 8 Elgin Street, Carlton project starts from $422,500.
There will be 115 residences in the project which has an estimated mid-2023 completion date.
Encompass is the latest residential project from Frasers Property and Citta Property Group.
Neometro has seen recent sales success at Nine Wilson Ave, their final apartment project in Brunswick's Jewell Station Village.
Over 35 per cent of the 73 apartments on offer have been snapped up over the traditionally quiet Christmas holiday period.
For a limited time Lendlease is offering no stamp duty for eligible buyers at Melbourne Quarter’s East tower.
One-bedroom apartments are priced from $446,000, with two-bedroom apartments starting from $607,000.
