A few months ago I wrote about the resurgence of the inner city apartment market.
The unit market has been so quiet in the last couple of years that when someone turned up to an open house, agents just assumed they were a lost neighbour or tourist looking for directions!
Well I’m pleased to report that the reported increase in activity has continued and has started to swell.
We sold every apartment under the hammer that we took to auction in July. With multiple bidders in the previously dormant range of $480,000 to $520,000.
We have seen a rise in open house numbers, offers and now sales. We are yet to see an increase in price, but that is largely due to the number of apartments that have been on the market.
We are simply seeing demand creep closer to supply. Obviously while the number of available apartments outweighs the number of buyers in the market, prices will remain steady.
It’s this steady platform however that is giving buyers confidence that we have seen the bottom of this market and prices can now only go up. It’s no longer a chance of ‘if’ but ‘when’.
So staring into my crystal ball, I expect to see the number of transactions in the unit market increase.
This will start in the inner city and head to the suburbs. The smart money will look for the apartments that offer something slightly unique for example a courtyard, larger floor plate, additional car park etc.
As these units are snapped we should start to see competition and then ultimately the rise of prices in the unit market.
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