Apartments Poised To Outperform
Property valuers predict Australia’s apartment market will perform strongly in the next 12 months.
A survey of valuers by CBRE reveals that 45% of respondents believe buyer demand will also increase in the next 12 months (down from 57% when surveyed in March).
CBRE’s Pacific head of research, Sameer Chopra, says more than 50% of valuers surveyed expect apartment price increases ahead.
More than half predict Perth’s apartment values will increase by at least 5%, while about a third believe Brisbane and Adelaide apartment prices will increase by the same amount.
Chopra says the production supply pipelines for apartments are slow so there is not a lot of new stock coming onto the market.
“The cost of putting up a new apartment is now 35% higher than where it was sitting in 2019,” he says.
“More people are coming to this realisation that it’s just very expensive to build brand-new stock, so they will pay more for the right stock today.”
The survey says more than 40% of the valuers expect house prices to also rise by more than 5% in the coming 12 months, with Perth, Adelaide and Sydney metropolitan areas tipped to lead the pack.
