Apartments a gateway to Melbourne's premium suburbs
Date: 3 Apr 18
Buyers looking to enter Melbourne’s most exclusive suburbs can save millions by purchasing an apartment or unit rather than a house, new REIV data shows.
In the last three months of 2017, buyers could secure an apartment in Toorak for $940,000 – less than a quarter of the suburb’s median house price of $4.6 million.
Savings of more than $2.1 million were also possible for buyers who purchased an apartment rather than a house in the inner city suburb of Hawthorn, which has a median apartment price of $611,000.
At $661,000 apartments were also the ideal entry point for buyers in Caulfield North which boasts a median house price of $2.4 million.
Million dollar savings were also possible for buyers purchasing an apartment in the upmarket suburbs of South Yarra, Brighton and Balwyn.
REIV President Richard Simpson said apartments remain relatively affordably, even in many of the city’s most exclusive neighbourhoods.
“Apartments and units are ideal for buyers who don’t want to compromise on location or amenities, offering an entry point to many of Melbourne’s most expensive suburbs.”
“Apartments allow buyers to enter a multi-million dollar suburb for just a fraction of the price of houses in the same suburb.”
“While apartments typically don’t see the same level of growth as houses, the apartment market performed strongly last year with double-digit price increases across the city.”
“First homebuyers should certainly consider an apartment or unit as a way of getting into the property market, with the majority of Melbourne suburbs recording median apartment prices below the $600,000 barrier.”
“Smaller properties also allow buyers to build equity in their home and move up the property ladder.”
Mr Simpson added that apartments were also delivering dividends for investors with strong capital gains being recorded in a number of inner and middle ring suburbs, including Thomastown, Reservoir and Thornbury.
“Larger apartments are certainly seeing some of the strongest growth across Melbourne while a car park continues to add significant value in inner city areas.”
SUBURBS WITH THE LARGEST DIFFERENCE BETWEEN HOUSE AND UNIT MEDIAN
Suburb |
Median House Price |
Median Unit Price |
Difference |
TOORAK |
$4,600,000 |
$940,000 |
$3,660,000 |
HAWTHORN |
$2,718,000 |
$611,000 |
$2,107,000 |
CAULFIELD NORTH |
$2,405,000 |
$661,000 |
$1,744,000 |
SOUTH YARRA |
$2,280,500 |
$608,000 |
$1,672,500 |
BALWYN |
$2,450,000 |
$820,000 |
$1,630,000 |
BRIGHTON |
$2,700,000 |
$1,085,000 |
$1,615,000 |
HAWTHORN EAST |
$2,130,000 |
$597,000 |
$1,533,000 |
CAMBERWELL |
$2,303,000 |
$790,000 |
$1,513,000 |
SURREY HILLS |
$2,285,000 |
$824,500 |
$1,460,500 |
KEW |
$2,150,000 |
$705,000 |
$1,445,000 |
GLEN IRIS |
$2,080,000 |
$680,000 |
$1,400,000 |
ESSENDON |
$1,715,000 |
$540,000 |
$1,175,000 |
PRAHRAN |
$1,550,000 |
$590,000 |
$960,000 |
HAMPTON |
$2,050,000 |
$1,102,930 |
$947,070 |
FITZROY NORTH |
$1,504,000 |
$645,000 |
$859,000 |
DONCASTER |
$1,405,000 |
$579,000 |
$826,000 |
RICHMOND |
$1,280,000 |
$495,000 |
$785,000 |
NORTHCOTE |
$1,350,000 |
$580,000 |
$770,000 |
BRUNSWICK |
$1,250,000 |
$513,500 |
$736,500 |
MOONEE PONDS |
$1,335,000 |
$650,000 |
$685,000 |
TOP QUARTERLY GROWTH SUBURBS FOR UNITS/APARTMENTS
|
Suburb |
Dec-17 Median |
Sep-17 Median |
Quarterly Change |
1 |
CLAYTON |
$725,000 |
$470,000 |
54.3% |
2 |
BRIGHTON EAST |
$1,255,000 |
$892,000 |
40.7% |
3 |
SOUTH MELBOURNE |
$783,000 |
$572,500 |
36.8% |
4 |
MOONEE PONDS |
$650,000 |
$505,000 |
28.7% |
5 |
BENTLEIGH |
$1,112,500 |
$875,000 |
27.1% |
6 |
CHELTENHAM |
$755,000 |
$600,000 |
25.8% |
7 |
MELBOURNE |
$567,500 |
$463,500 |
22.4% |
8 |
PRESTON |
$615,000 |
$505,000 |
21.8% |
9 |
HIGHETT |
$815,000 |
$687,500 |
18.5% |
10 |
MOUNT WAVERLEY |
$1,040,000 |
$895,000 |
16.2% |
TOP ANNUAL GROWTH SUBURBS FOR UNITS/APARTMENTS
|
Suburb |
Dec-17 Median |
Annual Change |
1 |
THOMASTOWN |
$459,000 |
34.9% |
2 |
RESERVOIR |
$585,000 |
28.0% |
3 |
BRIGHTON |
$1,085,000 |
26.7% |
4 |
THORNBURY |
$605,000 |
26.3% |
5 |
GLEN IRIS |
$680,000 |
25.7% |