That might not seem like a huge increase, but it’s a notable turnaround compared to recent years where prices have stagnated due to an oversupply, then took a dive from their post-COVID peak.
What’s driving this uptick in unit values?
The Herron Todd White Month in Review for April 2023 points to the relative affordability of Brisbane units, which is luring renters to become home owners.
“Units offer a relatively affordable alternative to renting in many of the near-to-CBD suburbs,” it says.
“It’s seen unit prices strengthen throughout the past 12-months or so. The apartment market has experienced growth across both owner occupier and investor stock too, an indication that even those units designed for investors are gaining some interest from owner-occupiers as well.
“This is most likely a function of the extremely tight rental market. Tenants want to avoid the uncertainty of finding and keeping a rental, so they choose to purchase what they can afford instead.”
It’s a trend that’s occurring around Australia says Core Logic.
“The shift to a more positive trend in unit values was geographically broad-based, with both the combined capitals (0.6%) and combined regional (0.2%) markets recording a monthly rise in values.”
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