Weekend Gold Coast Bulletin - Property
Unit values soar
Unit prices have soared as much as 30 per cent in some suburbs over the past year as buyers seek out more affordable options in the capital cities.
According to PropTrack’s January Home Price Index, unit prices rose 4.3 per cent over the past 12 months, with the more stable interest rate environment driving prices higher in most capital cities.
Capital cities have seen slightly more growth than regional areas.
Prices of units are 4.5 per cent and 4 per cent higher respectively compared to January 2023.
This growth can be mainly attributed to the period from mid to late 2023, during which the decline brought about by 10 consecutive rate hikes was recovered and prices hit new peaks.
In certain areas, annual price increases were even greater than what was seen at a national and combined capital city level.
Brisbane suburbs Raceview and Mount Warren Park experienced the biggest increase in unit prices in their city.
Prices are almost a third more compared to a year prior.
PropTrack data shows that units in Raceview were the strongest price growth performers nationally, up 31.6 per cent to $470,000.
Christies Beach (Adelaide) and Ellenbrook (Perth) tied in second spot with 31.3 per cent growth, while Mount Warren Park apartments came in third spot with 30.5 per cent growth.
The median unit price there is now $333,000.
Brassall units were the third strongest market in Queensland, up 27 per cent to $400,000.
A key driver of their appeal is that a large proportion of them have median prices below the national median of $600,000.
With the worst housing affordability in three decades, buyers are hunting for homes in more affordable suburbs.
While prices saw some reasonably strong growth during the latter half of 2023, they have started to slow in the new year.
Prices are expected to continue rising due to more stable interest rates, strong population growth and the ongoing new home shortfalls, albeit at a slower pace than last year.
Recently, SuburbTrends revealed that tenants could be facing rent hikes north of $300 a week by the end of the year.
The analysis found the average rent for a unit in Brisbane is expected to jump from $546 a week currently to $729 per week by the end of the year – almost as much as the average house rent of $774.
But in suburbs like Regents Park, Bray Park, and Sandgate, tenants are facing rises of around 50 per cent or about $250 a week for units.On the Gold Coast, similar increases in rent are predicted in Mermaid Waters, which would push the weekly cost of leasing a unit up by $326 to $1066.
SuburbTrends founder Kent Lardner said the meteoric predicted rise in unit rents was being driven by affordability.“People are being squeezed out of houses, so they’re going into units and that’s driving rents higher,” Mr Lardner said.