The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FIRST RELEASE TICKETS ON SALE FOR URBANITY-25 THE UNMISSABLE EVENT FOR PROPERTY PROFESSIONALS IN THE ASIA PACIFIC
FIRST TICKETS ON SALE FOR URBANITY-25 UNMISSABLE FOR PROPERTY PROFESSIONALS
SEE DETAILSDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Partner Lab
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
PolicyStaff WriterSun 09 Apr 17

Melbourne Shows Steady Sales In The Face Of Changing Apartment Market

iStock-469432888_620x380

The latest findings from property consultancy Urbis revealed that apartment sales in Melbourne indicated a slowing of overall sales volume from levels seen in the previous year.

Prices climbed compared to the previous quarter in the inner north and inner west precincts, whilst dropping in the central, inner east and inner south precincts.

"Prices tend to move around on a quarterly basis due to variation in stock, so we have not seen evidence of a pullback in pricing," Urbis Director of Property Economics and Research Mark Dawson said.

"This is more a function of luxury sales in the previous edition.”

Of the projects surveyed to create the data for Urbis' report, around one-quarter sold six per cent of their total volume in the quarter. Stripping out those projects that had already met presales targets, those in full-swing marketing achieved an average of over 10 per cent stock sold in the last three months of 2016.

Mr Dawson said that the latest research figures gave a fair reflection of the conditions in the market - "supply volumes are starting to scale back as financial and regulatory measures apply the brakes".

He said it had a dual impact upon sales volumes in the short term, but well-designed projects will continue to appeal to a sizeable market.

“Future launches will give a more genuine indication of market appetite for central city projects, since there has been some easing of momentum at the tail end of major projects.

“Sales volumes have held firm in precincts outside the central city, yet continue to remain modest in the context of central city volumes over the last two years.

“Successful suburban projects are delivering similar sales numbers on a quarterly basis compared to central precinct projects, as market appetite continues to spread to the suburbs.”

According to Urbis, the weighted average sales price for inner Melbourne in the December 2016 quarter was shy of $658,000, offering some hope to first-time home buyers.

Thirty-five per cent of projects had a weighted average sale price below the $600,000 mark and would be eligible for stamp duty exemptions under the new thresholds in place from July 1, 2017. A further 45 per cent of apartments would qualify for the sliding scale up to $750,000.

Mr Dawson said he envisaged  a boost to short-term sales volumes in the first half of 2017.

“We’d usually expect to see some uptick on the back of Lunar New Year followed by the effects of a race to the finish in Q2 as efforts to boost investor sales ramp up in advance of the stamp duty concession changes on July 1.

“This will coincide with some big projects that are ready to launch and those that are being fast-tracked so would expect a further kick in sales in the central precinct.”

Urbis said the short-term supply boost will be offset by continued slowing of the approvals velocity.

"This continued downward step from the 2015 peak follows the pincer movement of tighter planning in the central city, erosion of tax incentives and the continued tightening of both project and purchaser funding."Although the Reserve Bank of Australia has again opted to keep the official cash rate unchanged at 1.5 per cent, several banks have opted to increase rates independently as well as restricting investor lending for apartments.

Mr Dawson said that future absorption from record population growth, tightening of rental vacancy rates amid increasing housing affordability issues and government policy will present further opportunities for apartments.

“Whether purchased or rented, there is continued dwelling demand where the jobs are and Melbourne is well placed in that sense, but it will take time to see the full combined impact of first home buyer concessions, investor restrictions and supply moderation as the various policy, regulatory and market levers are pushed and pulled.”

ResidentialAustraliaFinanceMarketingReal EstateSector
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
North Melbourne Craigieburn HB Land EDM
Exclusive

Tribunal Finding Cruels 1000-Home Melbourne Plan

Clare Burnett
5 Min
Roseville Hycorp EDM
Exclusive

Ku-ring-gai TOD Backflip Slashes 1500 Homes from Under-Way Developments

Clare Burnett
7 Min
Exclusive

Housing Fix Sprint Begins with New Top Planner Pushing 13 Regional Plans

Phil Bartsch
8 Min
Elanor Investors Tweed Mall masterplan
Exclusive

Tweed Marks Time as $900m Mall Redevelopment Goes Quiet

Renee McKeown
6 Min
High-density residential construction in Melbourne
Exclusive

Stabilising Conditions in Melbourne Bring Hopes of Improved Feasibility

Leon Della Bosca
6 Min
View All >
Carillon City EDM
Residential

Twiggy’s $400m Carillon City Redevelopment Greenlit

Clare Burnett
Australia Post Facility Concept render 2 HERO
Infrastructure

E-Commerce Drives Australia Post Regional NSW Expansion

Leon Della Bosca
A render of part of the Greenline project along Melbourne's Yarra River.
Infrastructure

Melbourne’s Greenline Survives Bid to Shelve Project

Marisa Wikramanayake
Still missing federal and state funding, the 4km project on the Yarra’s north bank should pause, the city council has be…
LATEST
Carillon City EDM
Residential

Twiggy’s $400m Carillon City Redevelopment Greenlit

Clare Burnett
3 Min
Australia Post Facility Concept render 2 HERO
Infrastructure

E-Commerce Drives Australia Post Regional NSW Expansion

Leon Della Bosca
3 Min
A render of part of the Greenline project along Melbourne's Yarra River.
Infrastructure

Melbourne’s Greenline Survives Bid to Shelve Project

Marisa Wikramanayake
5 Min
Southport 20 Queen Street Approval hero
Development

MRCB Tower Greenlit for Gold Coast Motel Site

Phil Bartsch
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/melbourne-shows-steady-sales-face-changing-apartment-market