Apartment sales roller-coaster slows down

The apartment roller coaster continues within sight of Sydney’s Luna Park. Stage one of Blue at Lavender Bay apartments, as previously featured in Title hit the market on Saturday morning. Two hours and $200 million later, all 72 apartments had been sold, including an $8million dollar sub-penthouse.

What can we read into this downturn defying dash to own a slice of Milsons Point’s last residential tower with views of the Bridge and City? Well, the location is certainly one factor, which attracted buyers who ¬†the agent says were mostly owner occupiers from the North Shore. Apartments with million dollar views are pretty sure bets for buyers.

The market overall bounced back, with a combined capital city clearance rate pushing 70 per cent. More properties were on the market this week. The Melbourne market was slightly stronger than Sydney but the overall trend is downwards as this time last year 80 percent of properties sold.

The warning of every decreasing clearance rates came from Brisbane’s 43.9 per cent, which was down from even last week’s figure.¬†Harry Triguboff of Meriton continues to warn of the effect the apartment building slowdown will have on the economy in the Australian.

Mr Triguboff believes apartment prices have fallen 10 percent, which he says will have a big impact on the economy. The more prices and apartment stocks fall, the bigger the negative impact on economic growth. But there is an upside, as the peak amount of apartments coming on the market will be in the next year, as current projects complete.

If overseas investors are cautious or taxed from the market, it could be a golden time for locals and those able to take advantage of no stamp duty for first time buyers to buy in when apartments are ‘affordable’. But if we go into recession, prices will fall to varying degrees in your city, possibly leaving new owners with negative equity, a real problem if they also lose their job.

There are no easy answers and everyone’s circumstances are different, but watching your local market and knowing what you can truly afford gives you the best chance of joining the happy throng of apartment owners.


An artist's impression of an apartment inside Blue at Lavender Bay.

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