A wide gap has formed between house and apartment prices in Melbourne’s favourite suburbs.
The huge flood of new apartment construction in recent times has left apartment prices close to the city stagnating and bad press of late surrounding flammable cladding and poor construction standards isn’t helping.
The worst suburbs for apartments include Abbortsford, South Yarra and Parkville which all have differences in prices between houses and apartments at 80 per cent or above.
Melbourne is Australia’s worst capital city right now in terms of the price differential.
Simon Pressley from Propertyology spoke to realestate.com.au.
“Being centrally located, in a trendy area, being close to a train station, or having a stylish fit-out means absolutely nothing from a capital growth perspective if there are thousands of same-same Lego properties for buyers to choose from,” he said.
Advantage Property Consulting director Frank Valentic said it was a good idea for buyers to look further afield to avoid the problem.
“Try and buy units about a 10-15km radius from the city, where there’s not as much high-rise development,” he said.
“Stick to the older-style blocks from the 1930s to 1970s that tend to be in smaller developments and have more land value,” he told realestate.com.