If you’re thinking of buying an apartment, now is the best time because high density housing prices are at the lowest prices for a decade but are set to rise in the coming years.
Across the six major capital cities, apartment prices have fallen sharply as huge numbers of finished developments flood the market, according to data by advisory firm BIS Oxford Economics.
‘The supply peaks are happening now or over the next 12 months,’ Angie Zigomanis a senior manager at research house BIS Oxford Economics told The Australian.
In 2020 this surplus of apartments is forecast to reduce and, therefore, prices are likely to rise again.
If you’re thinking of buying an apartment, now may be the best time with high density housing at the lowest prices for a decade and set to rise in the next few years
‘The best time to buy is when the market’s quiet. That’s when you’re less likely to panic; there’s less pressure on; you’ve got plenty of time to search around,’ AMP Capital chief economist Shane Oliver said.
Construction research firm CoreLogic advises to still exercise caution when approaching the apartment market, saying the forecast for individual units can differ greatly.
‘I would be urging some caution for someone buying off-the-plan,’ says CoreLogic research head Tim Lawless.
Construction on apartment building can take a number of years and the market can change in this time.
Also, the outlook for unique apartments in boutique blocks are different to cookie-cutter developments.
The experts also advise that your motivation for buying an apartment should also be factored into your decision on when to purchase.
If you’re recently married and the aim is to raise a family, you can afford to buy when the market is low and stick out the lull.
If you’re an investor looking for a return it might be best to wait until there is an uptick in the market.
In 2020 this influx of apartments is forecast to decline and, along with this, prices are likely to rise again