Now could be the time for young buyers to get into the Melbourne apartment market
With a wave of new apartment developments coming onto the market combined with national apartment sales falling by 10.6 per cent for the month of February according to recent figures released by the HIA, now could be a good time for younger buyers to get into the market.
Robert Mellor, managing director of research group BIS Shrapnel, said the apartment glut is most severe in Melbourne and Brisbane. “We’ve been concerned for some time about the inner areas of Melbourne and Brisbane where there has been significant excess of supply,” he said. There are a number of factors playing against apartment prices along with over-building. Apartment rents are also falling and apartment vacancy rates are expected to climb from 3.5 per cent in Melbourne to ‘five or six per cent’, Mr Mellor said.
BIS Shrapnel says average two-bedroom apartment rents have fallen from $504.60 a week to $500 and average prices have fallen from $518,700 to $509,900 in Melbourne.