For the 12 months to February 2018, Melbourne recorded the strongest rate of growth for apartments out of all the 5 major capital cities.
In this period, Melbourne apartments recorded a 7% gain, with the median apartment price now sitting at $552,589.
Sydney apartments came in at the number 2 slot, at 4.8%, and Adelaide apartments at number 3 with a gain of 4.7%.
Top 3 cities: apartment growth
|Capital City||Rate of Growth|
While Melbourne houses values have been escalating in recent years, the data shows that apartment values have also been growing steadily.
“Growth in the Melbourne housing market has outpaced apartments for a number of years now. The tide does appear to be changing though, with housing now largely unaffordable in Melbourne, people are seeking out alternative options at more affordable price points. Therefore, over the medium term we do anticipate there will be growth in demand for apartments and townhouses,” said Ironfish National Apartments Manager, William Mitchell.
“Coupled with this is the 2017 Government decision to end stamp duty concessions for off the plan buyers. This has already had an impact on the market, and will ultimately result in less new supply into the market. Therefore, with less supply, and a growing percentage of the population turning to apartments and townhouses, we do anticipate growth in this (affordable) market to continue, and for the price gap of apartments compared to houses to narrow.”
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