Unit values are climbing in a string of Melbourne suburbs, bucking the trend of an overall sluggish market. Many of the suburbs that recorded rising unit values in the three months to November included medium-density blocks, CoreLogic research director Tim Lawless said. “Most would have a predominance of medium-density styles of apartment projects rather than high-rise developments closer to the city centre,” Lawless said.
“It may be buyers are preferring lower-density styles of units, which is helping to support prices.” Many of these top-performing markets are in eastern and north-eastern middle-ring suburbs more than 10 kilometres from the CBD, but also in commuter areas served by the rail network. Loading Blackburn South, Burwood East, Box Hill and Watsonia recorded quarterly unit rises of between 4.
8 per cent and 5.2 per cent. Closer in, unit prices rose in Kensington, Carlton and Parkville, which also had some medium-density environments rather than high-rise, Lawless said.
CoreLogic has seen the trend across most of the capital cities in which unit values are rising at a faster pace than house values. The researchers attribute the jumps to affordability. Units are often the only viable option for buyers locked out of standalone houses, especially with cost-of-living pressures on top of high interest rates and generally strict serviceability arrangements.
“It’s logical more demand would be deflected towards the unit sector,” Lawless said. Unit values in a .
