INVIC GROUP’s Post

House prices have officially climbed above the $1 million mark for the first time after a strong 12 months of growth. According to the Real Estate Institute of Australia (REIA) house prices in the major capital cities increased 1.8 per cent in the past three months while other dwellings jumped 1.7 per cent. The national median house price officially reached $1,005,242 marking the highest price on record. The median price for houses increased in Sydney, Brisbane, Adelaide, Perth, Canberra and Hobart, but decreased in Melbourne, and Darwin with increases ranging from 1.1 per cent in Canberra to 7.5 per cent in Perth. Sydney has the highest median house price at $1,595,310, which is now 58.7 per cent higher than the national median. Darwin is currently the most affordable city in the country with a median house price of $560,000. Read on:

Apartment prices rising faster than house prices in some inner Sydney suburbs! Take Forest Lodge, for example—unit prices jumped by 2.8% from April to July, while house prices dropped by 6.7%. That’s a 9.5% difference, highlighting a clear shift toward more budget-friendly apartment options. And it’s not just Forest Lodge. Suburbs like Rosebery, Glebe, Camperdown, and Redfern are seeing the same trend, with unit prices outpacing house prices by 7% to 9%. Rising interest rates and high property prices are driving more buyers toward apartments. Check out the suburbs below. Source: Domain

The current market conditions seem to be making units an increasingly attractive option for both buyers and investors. This shift could lead to units performing more closely in line with house values, especially in strategically located suburbs within 10 kilometers of the city center. What do you think—will units continue to close the gap with house prices?

Apartment supply is at the biggest levels in 40+ years. And yet the size of apartment units getting built has never been smaller.

🏡 Monday Market Update - Oxford, PA 🏡 Exciting news for our Oxford community! Here's the latest update on the local real estate market: - Number of Homes for Sale: Currently, there are 51 homes available for sale. The inventory offers a variety of options, ranging from $165,000 to $1,150,000. - Median Listing Home Price: The median listing home price is $482,800. This showcases the value and appeal of properties in our area. - Median Listing Home Price per Square Foot: At $221 per square foot, this metric provides insight into the cost efficiency and value of homes in Oxford. - Homes for Rent: Two homes are available for rent, with rental prices ranging from $1,000 to $2,200 per month. 🏗️ Note: It's worth mentioning that most homes for sale are new constructions, offering modern amenities and the latest in design and technology. Whether you're looking to buy, rent, or invest, Oxford has something for everyone. If you have any questions or need assistance navigating the market, feel free to reach out. I'm here to help you find your perfect home sweet home! #OxfordPA #RealEstate #MarketUpdate #NewConstruction #HomeBuying #HomeRenting

The United States needs more homes — 3 million to 7 million, depending which expert you ask. In many parts of the world, the obvious solution would be to construct high-rises; however, financing and liability challenges for U.S. developers have meant almost no new condo construction since 2009. Instead, developers have found a sweet spot with townhouses. They are cheaper to build. They usually face less “not in my backyard” resistance. And buyers love them. Townhouses have all the trappings of a classic dream home, but they cost less to buy, offer a low-maintenance lifestyle and are more climate-friendly. It’s the American Dream, but with a smaller yard.

Apartment prices in Melbourne and current, future supply indicators (links attached)   A recent article in Domain news got me thinking about apartment prices in Melbourne. The article cites some suburbs as the top suburbs where unit values are rising faster than house values. Plotting the top few suburbs in maps shows us that most of these suburbs are in the "Inner and Middle Melbourne" area.   The URBIS Melbourne Apartment conditions August 2024 report brings up some interesting information that may speak to one of the many factors that account for the value increases.   In 2024 the vast majority, close to 80% of buyers in the "Inner and Middle Melbourne" area are owner occupiers. Contrast this with 2016 where just over 25% of buyers of these apartments are owner occupiers.   The same report gives us an indication of future supply. The report tells us that supply is halving, from 12,265 pa in 2016-21 to around 6780 pa in the 2022-27 period.   So, reader, all other factors being equal, what happens when supply halves and the demand is now from "owner occupiers" (non-discretionary spend?)?   Another recent article published in Realestate.com.au has given us an indication for the percentage sale price of units and houses in the last twelve months for most of our capital cities including Melbourne. The price ranges that the Domain article referenced in the beginning of this piece cites are from $539k to $1.1m. The realestate.com.au article shows us that the medium to high range of units by price available for sale in Melbourne are in the $600k to $1.375m range which is about 50% of the unit market in Melbourne. The price increases for units in Melbourne are not for units at the lower ends of the market in terms of unit price. https://lnkd.in/gmAaTCeD https://lnkd.in/gcUWxcm4 https://lnkd.in/gCZt5dRN

What Is an 'ADU, Exactly? Accessory dwelling units are independent residential dwellings located on the same lot as a detached single-family home. They also may be referred to as accessory apartments, secondary suites, backyard cottages, in-law units or granny flats. ADUs may offer the potential to increase housing affordability and inventories, accommodate multigenerational living and even add a revenue stream for homeowners who want to rent one out. Many cities are adopting zoning regulations to permit ADUs, but some areas are fighting against the higher density they can bring. ADUs can take many forms, such as: * Internal ADU: part of the primary house converted into a secondary living unit * Attached ADU: an addition to a home that shares walls with the main house * Detached ADU: a stand-alone, independent living structure on the same lot, often located in the backyard or side yard
 Source: National Association of Realtors Summer 2024 https://lnkd.in/gV9-4Xhe accessorydwellings

House or Apartment: Which 2014 purchase would have paid off better today? Some interesting data from Nerida Conisbee Ray White Group, Chief Economist. On average, a house purchased in Australia at $500,000 in 2014 would have increased by 84% to $921,200, while an apartment purchased at the same price would have increased by 40% to $700,400. However, the gap is greatest in Sydney where the house would have almost doubled while the unit would have increased by 37%. A similar situation occurs in Brisbane where the gap is also wide - a house more than doubling compared to a unit increasing by 53%. Buying a unit or a house for $500,000 in Hobart almost yields the same results now. The house would be worth on average $1 million now, the unit $996,000. The gap in Darwin is also similar, although both would have fallen with the $500,000 unit now worth 14% less compared to 1% less for the house.  

After 21 months of gains, the Sydney housing market has finally recorded a drop in values. CoreLogic's Monthly Index showed home values, both units and apartments, declined in October, the first time since January 2023. CoreLogic Research Director Tim Lawless notes, however, that the stronger performance across the more affordable end of the market is a consistent theme across the capital cities. Read more about what happened in the Sydney off the plan apartment market in October. TWT Property Group | Belle Property | Thirdi Group | Phoenix Property Investors | Scion Group | Meriton Group Author: Joel Robinson ------------ 📣 Was this update of interest to you?🔥 Join 17,000+ of your residential property development colleagues who follow Urban on LinkedIn. We regularly post free insights about: 💡  New project launches and updates 💡  What buyers are searching for on AU’s largest off-the-plan buyer platform 💡  Weekly interviews with industry leaders Follow Urban.com.au or connect with our CEO Mike Bird to keep your finger on the pulse of the apartment and townhouse market.