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In July, McGrath’s Theo Kotsias 3/6 Maxwell Road Sold for $2.8 million. The seller made $500,000 in two and a half years — the home last sold for $2.3 million in January 2022.
“She was very happy. I sold it to her. I sold it to her,” he said.
“A lot of the apartments that are selling are more modern apartments that were purchased previously, perhaps off the plan, and are now selling for a higher price,” he said.
The property originally sold in 2015 for $1,868,000, a $1 million increase in price in less than a decade.
Kotsias added there was demand for people to downsize to live close to trams, light rail and nearby villages of Annandale and Glebe.
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In Dulwich Hill, units are priced at an average of $909,000, up 5.4 percentage points over the quarter compared with houses. LJ Hooker agent Yianni Karakikes attributed the gap to affordability and the higher cash rate, which increases mortgage repayments and reduces borrowing capacity.
“When interest rates are at 2 per cent, people can’t get the money they deserve from the banks,” he said.
Karakikes, who sold a unit last year for $640,000 and another with the same layout in the same building for $750,000 a year later, said the lower end of the market was growing significantly as potential buyers faced challenges getting large loans.
“It depends on what people can get from the banks. It’s hard to get a big loan right now. So I think apartments are doing better than houses because people can’t get money from the banks,” he said.
Ray White’s Nerida Conisbee said new apartment buildings could boost median prices, while also attracting a greater pool of buyers at the unit price point.
The single-family home market in Glebe is not as strong as the condo market.Credit: Reed Wyman
“Right now, we’re seeing a pretty reasonable level of investment activity, we’re seeing a pretty good level of first-time homebuyer activity, but we know that first-time homebuyers and investors can’t afford or typically won’t buy a $3 million property, but they might spend $1.3 million,” she said of Abbotsford, which ranked eighth on the list, where house prices have fallen but condo prices have held steady.
Lawless predicts the apartment market will perform more closely in line with home values.
“Ultimately, in the long term you may find that the underlying scarcity value of homes, particularly those located near the CBD or coastline or in popular areas, will hold their value quite well simply because they don’t build more land,” he said.
“But for those looking at fairly well-located unit markets, within 10 kilometres of the city … then I absolutely think they’re going to see very competitive growth rates.”
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