Suburbs Box Hill and Doncaster, which are both situated in Melbourne, posted declines in unit prices.
Unit prices in Box Hill have fallen over the past five years, and the trend has been linked to an increase in the number of apartments, according to an article published by realestate.com.au.
“In the last two to three years, there’s been a huge injection of apartments. Of the units that used to be sold five years ago, most were predominantly two or three-bedroom villas or townhouses. But once the apartments started getting finished and sold off, that would have brought the price down by a significant value,” said Derek Tsao, Ray White Box Hill agent.
In addition, there had also been a correction over the past year, in line with the national property market.
“…Most buyers are looking for a second bed, and they’re not willing to extend their price to that level. Rental returns are still very strong for a single bed though,” Tsao said.
Doncaster, meanwhile, has recorded a 3% drop in unit prices since 2014, according to data from CoreLogic. The suburb bucked the trend in Manningham, resulting in a buying opportunity due to the development and infrastructure projects in the area.
“It would be about supply and demand because you’ve got the new apartment building at the golf course; you’ve also got some other projects in the area,” said Tony Tuccitto, Barry Plant Doncaster East agent.
The region is beginning to attract buyers, thanks to proposed additional development at Westfield Doncaster, proximity to Ruffey Lake Park, and the North East Link project.
“I think the area is probably undercapitalised for what it is and will start growing in the future. I think it’s a good buying opportunity at the moment,” Tuccitto said.
Realestate.com. au reported that prices are expected to continue dropping by up to 8% in the next months, but those that were falling were sliding from a peak.
