In the last 12 months, Australia’s unit sector has been generally weak compared to houses but there are apartment markets showing signs of growth, including Avalon Beach.
The latest analysis from CoreLogic shows that apartment values in Avalon increased to 12.9 percent, whilst about a dozen other coastal areas or rural destinations across the country have been doing well in the market despite a generally underperforming unit sector.
Lennox Head in New South Wales had the highest increase in apartment values at 27.6 percent. In Brisbane, the bayside suburb of Wynnum racked up a 25.1 percent increase and the coastal setting of Cleveland rose to 18.1 percent. Ocean Grove and Torquay in Victoria had a 26.3 percent and 25.8 percent gain, respectively.
A few suburbs in the Gold Coast, such as Bilinga, Currumbin, Palm Beach and Tugun, averaged an apartment value increase of 22.8 percent.
CoreLogic’s Tim Lawless said that about 70 percent of these apartment markets are considered “lifestyle” investments for buyers “looking for a sea change or tree change,” especially in this work-from-home climate. As the prices of detached houses scale-up, people will turn to medium to high-density dwelling options but the “holiday” location will also prove to be a factor.
Meanwhile, as of 3 May 2021, the average median price of a three-bedroom unit in Avalon is $1.6 million whilst the average median price of a three-bedroom house is $1.937 million.
Mr Lawless also said that Syndey’s unit rental demand will remain weak until the borders will open for international travel. Elsewhere, listings of available units are soaring, further weakening the prices and delaying the recovery of this sector post-pandemic.
