REIV analysis of the property market over the 2009 March quarter reveals that unit and apartment prices have declined significantly less than house prices over the same period, posting a mere 0.8per cent drop since December. The annual median for units and apartments, however, shows market activity more consistent with the house price median (-3.2 per cent and -4.7per cent respectively).
The 2009 March quarter median price for a unit or apartment was $360,000, compared with the December 2008 figure of $365,000.
The relative stability in the apartment market can be attributed to a consumer rush to claim federal and state government first home buyer financial assistance. At a time when the rental market is still tight and interest rates historically low, this incentive to buy is reflected in only a slight lowering of the quarterly median.
Brighton topped the list of the most expensive suburbs for units and apartments, with a median of $685,000. In fact, all suburbs in the top 10 were valued at more than the overall March median for this market sector.
In the top five most affordable suburbs, Carlton, which is dominated by student housing, was the most affordable with a median price of $205,000, ahead of Werribee, Footscray, Frankston and Sunbury.
The market is being driven by a combination of an increasing population, improving affordability and the grants for first home buyers. With most of the grants forecast to cease on June30, the health of the economy will be the factor that determines house prices in the second half of the year.
