RESIDENTIAL PROPERTY
THE Melbourne apartment market only continues to be difficult to read and predict with post-pandemic conditions supported by...
According to a report by Charter Keck Cramer’s Richard Temlett, the market is expected to continue shifting around vital factors such as interest rates.
“Once interest rates enter a cutting phase, improved sentiment and ongoing supply issues are anticipated to trigger increasing house prices...
Construction costs are also continuing to increase, creating a major roadblock for several projects. Certain projects may be abandoned or put on hold as a result.
Melbourne’s population is set to grow over the next decade or so, despite a number of residents they’re projected to lose to...
A few of the key figures represent an update on the state of Metropolitan Melbourne in the market across H2 2022.
In terms of supply, 165,200 apartments have been completed in metro Melbourne since 2009. There are also currently build-to-sell...
Over 2240 build-to-rent apartments are currently under construction across seven projects with completion forecast for 2023-24.1700 BTR apartments were...
Rent is currently very popular among millennials, with the likelihood of being able to afford a house in Melbourne slim in the current market.
12% of Millennials are living in high-rise apartments (a 9% increase from 2006) while 44% are renting (also up 9% from 2006), without the ability to get into the for sale market.
Despite the work on further apartment development and planning, the supply v demand battle continues to show a concerning imbalance.
With numbers predicted for Melbourne to see their population grow to 7.9 million by 2050, it’s been calculated that around...
Meanwhile the report said there is likely to be a natural price floor on price falls of established and contemporary BTS apartments in Melbourne.
But given current market conditions, and in the absence of a decline in construction costs or underlying land values,
“Charter Keck Cramer observes that although this is already starting to occur in several sub-markets, particularly in projects aimed at rightsizers / downsizers...
Temlett said until there is more certainty with interest rates, the build to sell (BTS) apartment market is anticipated to...
“Presales are anticipated to begin to pick up from the point at which interest rates stabilise (assumed mid to late-2023) and...
Conversely the build to rent apartment market is quickly emerging in Melbourne with four projects (1,700 BTR apartments). A further seven projects (2,240 apartments) are...
“Given the strong rental growth in Melbourne, it is anticipated that those developers that are able to proceed with construction will...