Apartment Prices Poised To Rise
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Apartment Prices Poised To Rise

As housing affordability becomes an issue, unit prices close the gap.

By Terry Christodoulou
Thu, Sep 9, 2021Grey Clock < 1 min

The divide between house and unit prices is starting to close as apartment prices across the country’s major capitals begin to lift.

Analysis by CoreLogic indicates that apartment price growth is hastening with house prices out of reach for many home buyers.

Apartment prices lagged behind the rapid rise of house prices through the first quarter of the year with capital city house prices rising 1.1% faster than units each month.

However, by August that gap had shrunk to an average of 0.7% per month – according to CoreLogic data.

In Sydney, the growth gap between houses and units is averaged at 1.6% this year. However, it is narrowing with the price differential peaking at 2.2% in March this year – down to 0.6% in August.

The other capitals have seen a more moderated narrowing with Melbourne seeing house values rise 1.3% faster than units in May, reduced to 0.9% in August.

In Brisbane, the gap has narrowed from 1.5% in June to 0.7% in August.

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By Kanebridge News
Thu, Aug 11, 2022 < 1 min

New research from Knight Frank’s International Waterfront Index shows waterfront properties are costing more than double their inland counterparts in Sydney while in Melbourne waterside properties attract a 40% premium.

Australia’s coastline attracts some of the highest waterfront premiums in the world with Sydney topping the index — an average premium of 121% — compared to an equivalent home set away from the water.

Auckland ranked second on the list of 17 international locations — a premium of 76%. The list saw Gold Coast (71%), Perth (69%) and the Cap d’Antibes (59%) on the French Riviera round out the top 5.

Australia continued to feature prominently in the research with Brisbane’s waterfront premium coming in at 55%, with Melbourne also in the top 10 at 39%.

According to Knight Frank Australia’s head of residential research, Michelle Ciesielski, there has always been strong appetite for Sydney’s waterfront homes.

Australia’s luxury residential market has advanced, it lacks the depth of prestige markets in more established global cities said Cieselski.

“As a result, our Australian cities can achieve a significantly higher premium on the waterfront compared to a similar property inland without access to, or a view of, water,” she said.

“Also, Australia is known for its balmy outdoor lifestyle, so many buyers in this super-prime space are willing to pay a premium to secure the ideal position along the waterfront.”

The data also suggests that beachfront homes were most desirable, commanding a premium of 63% compared to harbour locations fetching 62% premium and coastal homes with a 40% premium.