Demand for units in suburbs soars
The median price for apartments rises beyond the city centre.
A REVIEW of the REIV median prices for units and apartments in the December quarter shows a number of suburbs recording healthy levels of demand and increases in sales in the medium term.
In the past five years, the median price of a unit in metropolitan Melbourne has increased by 47 per cent from $300,066 in the December quarter of 2004 to $441,000. Growth in suburbs such as Richmond, Doncaster East, St Kilda and South Yarra compares favourably and shows that investments in this style of dwelling can deliver similar returns to more traditional houses, especially as the city’s need for housing grows.
In Richmond, the median has risen by 87 per cent, from $294,500 to $551,000. This increase reflects the suburb’s excellent inner-city location and the growth of demand for that style of housing. This is also reflected in the fact more units and apartments are sold in Richmond than houses.
A similar story is apparent in St Kilda, where the median is now $468,750, up 67 per cent in five years; in South Yarra, where growth of 66 per cent has been recorded; and Prahran, which has recorded a 69 per cent increase.
Strong demand for medium-density houses is also found in suburbs a little further from the city centre. Doncaster East, where house sales still outnumber unit sales, recorded an increase in its median of 73 per cent over five years to $546,000, and in Essendon, growth of 71 per cent was recorded.
Unit and apartment sales in Doncaster East and Essendon differ from those in inner-city suburbs as they are more likely to be medium-density rather that high-density.
Enzo Raimondo, chief executive REIV.
With a market like the one Melbourne is experiencing it is important that you have the right advice by property professionals so you do not overpay for the wrong property. Domain Property Advocates Warwick Brookes and David McMillan can assist with advice so call now on 03 9853 5599.
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Tags: cent, centre, Demand, doncaster east, East, housing, inner city location, inner city suburbs, medium density, metropolitan melbourne
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