CBD tops the  2016 residential sales list

CBD tops the  2016 residential sales list

The CBD has taken out the number one spot for the highest total value of residential unit sales for 2016.

In his report released in December, head of research for Property Data and Analytics company CoreLogic, Tim Lawless, summarised how the national real estate market performed in the 12 months leading up to September last year.

With a total of $739.7 million worth of residential units sold in the region, the CBD had the highest gross value in the nation by far – a result that managing director of CBRE residential projects Victoria, Andrew Leoncelli, expected.

“The CBD market would easily have the highest gross revenue for apartments given the sheer volume of product that gets sold in the CBD each year,” he said.

Mr Leoncelli said that CBRE had more than $1 billion in gross sales from a single CBD development in 2015.

CBD unit prices were the lowest of the top 10 list, with a median price of $470, 055.

Managing director of NPM, Sam Nathan, attributed this to the varied types of apartments available in the CBD.

“The CBD apartment market is a diverse environment, spanning from entry-level studio investment stock through to high-value owner occupied accommodation,” he said.

“This explains that, despite the high-volume of sales, the price points at which apartments are traded in the CBD are justifiably less than the median price for established/landed property in the city fringe and inner suburbs,” he said.

The CBD also impressed in the area of highest gross rental yields, taking out the second spot in Victoria.

With a gross income of 5.7 per cent for unit investments, the CBD was just topped by Carlton with a gross rental yield of 6.3 per cent.

Mr Lawless expects to see a decrease in unit sales during the year to come.

“Overall, in 2017 we expect capital city growth rates to be lower compared with 2016 due to factors ranging from higher supply levels, increasing affordability pressures, higher mortgage rates and softer investment demand due to regulatory changes,” he said.

Despite this, Mr Leoncelli believes that the CBD will continue to produce a high volume of sales.

“The city will always deliver and cater for the highest number of apartments well into the future. The city fringe suburban locations are very much characterised by lower density developments very deliberately and will never out gross the city market,” he said.

Since Labor has been in power …

Since Labor has been in power …

March 20th, 2024 - Evan Mulholland
Like us on Facebook