Apartment Values Hit Record Highs | Kanebridge News
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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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House values continued to fall last month, but the pace of decline has slowed, CoreLogic reports.

In signs that the RBA’s aggressive approach to monetary policy is making an impact, CoreLogic’s Home Value Index reveals national dwelling values fell -1.0 percent in November, marking the smallest monthly decline since June.

The drop represents a -7.0 percent decline – or about $53,400 –  since the peak value recorded in April 2022. Research director at CoreLogic, Tim Lawless, said the Sydney and Melbourne markets are leading the way, with the capital cities experiencing the most significant falls. But it’s not all bad news for homeowners.

“Three months ago, Sydney housing values were falling at the monthly rate of -2.3 percent,” he said. “That has now reduced by a full percentage point to a decline of -1.3 percent in November.  In July, Melbourne home values were down -1.5 percent over the month, with the monthly decline almost halving last month to -0.8%.”

The rate of decline has also slowed in the smaller capitals, he said.  

“Potentially we are seeing the initial uncertainty around buying in a higher interest rate environment wearing off, while persistently low advertised stock levels have likely contributed to this trend towards smaller value falls,” Mr Lawless said. “However, it’s fair to say housing risk remains skewed to the downside while interest rates are still rising and household balance sheets become more thinly stretched.” 

The RBA has raised the cash rate from 0.10 in April  to 2.85 in November. The board is due to meet again next week, with most experts still predicting a further increase in the cash rate of 25 basis points despite the fall in house values.

Mr Lawless said if interest rates continue to increase, there is potential for declines to ‘reaccelerate’.

“Next year will be a particular test of serviceability and housing market stability, as the record-low fixed rate terms secured in 2021 start to expire,” Mr Lawless said.

Statistics released by the Australian Bureau of Statistics this week also reveal a slowdown in the rate of inflation last month, as higher mortgage repayments and cost of living pressures bite into household budgets.

However, ABS data reveals ongoing labour shortages and high levels of construction continues to fuel higher prices for new housing, although the rate of price growth eased in September and October. 

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