1 June 2010 | Oliver Hume | Residential
Apartments replacing cottages in Melbourne’s inner city
MEDIA RELEASE
1 June 2010
Apartments replacing cottages in Melbourne’s inner city
Paradigm shift in inner city living driven by price rises
Apartments are replacing the single fronted cottage as the first home of choice in Melbourne’s inner suburbs and, increasingly, into the middle ring regions of the city.
With 28,000 apartments to be marketed in Melbourne in the next 18 months Jamie Kay has been appointed to spearhead property marketing giant Oliver Hume’s apartment division.
Kay says the Melbourne apartments sector is well into its recovery phase driven by strong demand from both the investment and owner occupier sector and a shortage of affordable inner city homes.
“Historically demand for single fronted cottage product in popular inner city Melbourne suburbs such as Richmond, South Yarra, Abbotsford, Brunswick, St Kilda etc has been fuelled by upwardly mobile professional singles and couples.
“Over the last 6 – 12 months in particular the established inner city housing market has become out or reach of the upwardly mobile young home buyers,” he said .
Kay said REIV research shows the median price for an inner house is now $893,000 and is expected to top $1 million in 2011.
“The paradigm shift is that demand between $400,000 - $650,000 is being met by one and two bedroom apartment projects in these areas,” he said.
He said Oliver Hume Research recorded the entry level price for studio apartment (median 34 sqm) was now $302,500, a one bedroom $379,500 (median 51 sqm) and two bedrooms $530,000 (median 73 sqm) and three bedroom apartments (median 130 sqm).
Oliver Hume Research has found there have been 31 projects released since September 2009 – a jump of 24% from the previous six months – as banks release finance and investment money is starting to flow again.
There are currently 370 projects being marketed in inner and middle Melbourne offering 14,000 units.
Kay said the push into the middle suburbs would increase in coming years as affordability issues continued to impact on the general market and developers responded with new product to meet affordability demands with prices now averaging $600,000.
“This is reflected in (approx) 2000 apartments are being marketed in Moreland, Boroondara, Maribrynong. Kingston and Moonee Valley,” Kay said.
Kay is a former Lend Lease Senior Marketing Manager who has over 13 years experience in London, Singapore, Kuala Lumpar and Melbourneand is a project marketing specialist delivering development solutions that respond to market demand and customer base.
In the past 12 months Oliver Hume has sold $60 million of apartments in Cirque in Richmond and Tiara in Southbank.
Oliver Hume Real Estate Group is the marketing agent behind more than 46,000 residential products along the eastern seaboard of Australia, representing Australia’s leading public and privately listed companies. In Victoria alone, over the past 10 years Oliver Hume Real Estate Group has successfully delivered more than 170 residential projects, settling in excess of 50,000 residential products. It has offices in Victoria and South East Queensland and is active in both land and medium density and high-rise sectors.
For further information please contact:
Andrew Perkins, Senior Research Manager at Oliver Hume Real Estate Group Ph: 03) 9669 5999
Media enquiries to Grant Muller on 0411 602 233