As Australia’s property market faces a fast cooldown in prices post-boom, experts believe apartments will weather the storm a little better than houses in the year to come. National house values for the three months through Aug. 1 were 2.2% below their April peak according to CoreLogic data, however, apartments were down just 1.4%.
Houses reaped the greatest real estate rewards during the pandemic as Aussies went in search of spacious suburban homes after spending the better part of two years locked down. Apartments during the same time frame, however, saw weaker price growth.
As a result, apartments are now expected to regain popularity given they offer home buyers and investors more value for money in a climate of rising inflation and several months of consecutive interest rate increases.
New developments across Australia have been slow to get off the ground in 2022 because the island nation has not been immune to the global construction crisis. The tyranny of distance is also working against many developers who are struggling through supply chain challenges and labor shortages brought on by two years of closed borders.
But as the southern hemisphere’s spring is about to bloom, so are a number of new luxury residential projects. These fresh developments have the benefit of post-pandemic design principles so elements such as outdoor space and work-from-home functionality have been front and center during creation.