The market for high-end apartments and units within the Central Business District (CBD) of Melbourne is back, fuelled by a quick economic recovery and housing shortages.
The Real Estate Institute of Victoria (REIV) has released a median sales figure for the December quarter, showing that prices of high-end apartments and units have increased significantly.
East Melbourne was the top in the list, hitting a 70 percent increase to $825,000 in the December quarter from $485,000 in the September quarter. This was followed by Melbourne’s CBD area with median prices between $395,000 to $471,000. Fairfield, with median prices between $376,250 and $448,000, and Docklands, with median prices between $525,000 and $615,000, were also among the list of the top 10 most expensive suburbs for apartments and units.
According to REIV spokesman Robert Larocca, high-density, luxury apartment living is now present in the new market in Melbourne.
“A year ago there was a lot of trepidation in the market because of where the economy was but the top end of the market is back,” he said.
East Melbourne’s increase was “especially unusual”.
“We haven’t seen that sort of increase. Quite often East Melbourne doesn’t even make our stats because it’s so small geographically,” Larocca said.
“It’s a reflection of the amount of development happening around there. It’s as expensive as it is in houses.”
The highest price turnover was seen in the Melbourne CBD, at a median price of $471,000. South Yarra (average $605,000) and Richmond (average $551,000) also recorded the most apartment and unit sales in the last quarter.
Mr. Larocca said that Richmond recorded the highest number of auctions last year.
The figure also showed that Carlton was the only inner-city suburb to have the most affordable price at $295,000, which was mostly for student accommodation.