Apartment Values Hit Record Highs
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Apartment Values Hit Record Highs

While detached dwellings took the spotlight, apartments have been on the rise.

By Terry Christodoulou
Thu, Sep 23, 2021 4:47pmGrey Clock < 1 min

Apartment markets around the country have broken previous records to reach new highs after rebounding from the pandemic’s first wave in 2020.

More than half of the 994 unit markets analysed are sitting at record highs according to a CoreLogic analysis.

Aside from 56.3% of the unit market reaching a new benchmark, the market has posted an average growth of 16.1% in value since the start of stage 2 restrictions at the end of March last year.

Although headlines have covered the detached housing markets record-breaking price gains, apartment prices are catching up with the recovery – including in coastal areas.

Now, nearly 64.4% of the 560 record-breaking unit markets are in capital cities – growing up to $595,000 in value during the period.

Unsurprisingly, apartment values in Sydney’s eastern suburbs of Darling Point and Rose Bay hit new highs – surging 26.6% and 25% respectively since March last year.

However, the coveted location wasn’t the fastest-growing apartment market within a capital city. That title goes to Blue Bay on the NSW Central Coast with a 36.5 %jump in value, followed by Sandy Bay in Hobart with 33.9% growth.

Elsewhere the want for a coastal lifestyle brought Avalon Beach and Warriewood’s northern beaches to new heights up 25.6% and 25.1% respectively.

In the regions, Portarlington in Victoria’s Bellarine Peninsula hit ranked highest with a 47.8% jump while Shoalhaven Heads south of Sydney and Moss Vale in the NSW Southern Highlands also racked up strong growth of 44.9% and 41.1% respectively.

CoreLogic’s analysis was based on the hedonic index, taking into account the combined value of the unit market in the suburb excluding data for Perth and regional WA.



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Ray White’s chief economist outlines her predictions for housing market trends in 2024

By Bronwyn Allen
Tue, Nov 28, 2023 2 min

Ray White’s chief economist, Nerida Conisbee says property price growth will continue next year and mortgage holders will need to “survive until 2025” amid expectations of higher interest rates for longer.

Ms Conisbee said strong population growth and a housing supply shortage combatted the impact of rising interest rates in 2023, leading to unusually strong price growth during a rate hiking cycle. The latest CoreLogic data shows home values have increased by more than 10 percent in the year to date in Sydney, Brisbane and Perth. Among the regional markets, price growth has been strongest in regional South Australia with 8.6 percent growth and regional Queensland at 6.9 percent growth.

“As interest rates head close to peak, it is expected that price growth will continue. At this point, housing supply remains extremely low and many people that would be new home buyers are being pushed into the established market,” Ms Conisbee said. “Big jumps in rents are pushing more first home buyers into the market and population growth is continuing to be strong.”

Ms Conisbee said interest rates will be higher for longer due to sticky inflation. “… we are unlikely to see a rate cut until late 2024 or early 2025. This means mortgage holders need to survive until 2025, paying far more on their home loans than they did two years ago.”

Buyers in coastal areas currently have a window of opportunity to take advantage of softer prices, Ms Conisbee said. “Look out for beach house bargains over summer but you need to move quick. In many beachside holiday destinations, we saw a sharp rise in properties for sale and a corresponding fall in prices. This was driven by many pandemic driven holiday home purchases coming back on to the market.”

3 key housing market trends for 2024

Here are three of Ms Conisbee’s predictions for the key housing market trends of 2024.

Luxury apartment market to soar

Ms Conisbee said the types of apartments being built have changed dramatically amid more people choosing to live in apartments longer-term and Australia’s ageing population downsizing. “Demand is increasing for much larger, higher quality, more expensive developments. This has resulted in the most expensive apartments in Australia seeing price increases more than double those of an average priced apartment. This year, fewer apartments being built, growing population and a desire to live in some of Australia’s most sought-after inner urban areas will lead to a boom in luxury apartment demand.”

Homes to become even greener

The rising costs of energy and the health impacts of heat are two new factors driving interest in green homes, Ms Conisbee said. “Having a greener home utilising solar and batteries makes it cheaper to run air conditioning, heaters and pool pumps. We are heading into a particularly hot summer and having homes that are difficult to cool down makes them far more dangerous for the elderly and very young.”

More people living alone

For some time now, long-term social changes such as delayed marriage and an ageing population have led to more people living alone. However, Ms Conisbee points out that the pandemic also showed that many people prefer to live alone for lifestyle reasons. “Shorter term, the pandemic has shown that given the chance, many people prefer to live alone with a record increase in single-person households during the time. This trend may influence housing preferences, with a potential rise in demand for smaller dwellings and properties catering to individuals rather than traditional family units.”

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