Suburbs with the best growth for units and apartments
A review of the REIV median prices for units and apartments in the December quarter shows a number of suburbs recording very healthy levels of demand and increases in sales over the medium term.
In the last 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 very 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 that 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 homes is also found in suburbs a little further from the CBD. 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.
Units and apartments sales in Doncaster East and Essendon differ from those in inner city suburbs as they are more likely to be medium- rather than high-density.
For expert information on investing in property contact Warwick Brookes of Domain Property Advocates on 9853 5599.
