I was in our Ray White Toowong office this week when real estate stalwart Robin McIwain told me about the market movement in unit prices. Apartment prices have risen over the last 12 months, so I expected to hear a familiar story.
But what she shared wowed me. About a year ago, a unit had sold in ‘The Precinct’ complex in Toowong, a two-bedroom unit, and it sold for $610,000 — a good price at the time. Only six months later, Robin was involved with a sale in the same complex, this time selling for $650,000. That’s $40,000 in six months, not bad, and that was where I thought her story was going to end. But it wasn’t; she continued detailing how another unit had just sold in the complex for an eye watering $801,000! That’s $191,000 in just over 12 Months!
So why? This market is being driven by first-home buyers and tenants who are over-fighting for a rental. The money for some of these buyers comes from a first-home buyers support package that allows them to buy with a 5 per cent deposit, gives them access to a better interest rate and removes mortgage insurance.
This is bringing a pool of buyers to the market who would have otherwise needed more time to save and increasing the competition in this market. Sharp uplifts like this don’t hang around forever, so it’s no surprise this interest is causing unit owners to sell their rental properties.
Haesley Cush I This article is from the July 30th issue of The Courier Mail Digital Edition. To subscribe, visit https://www.couriermail.com.au/