2014 In Review

Market Insights
9 years ago
2 minutes

It has been a remarkable year for real estate this past 2014. Property prices increased, and new developments are selling out sometimes in only a matter of hours.

Specifically, in terms of off-the-plan apartments, it has been a record-breaking and defining year for many.

UEM Sunrise’s Aurora Tower sold 95% of their apartments in under two and a half weeks, Urban DC’s Oscar Brighton sold out by Marshall White's Leonard Teplin, and Sydney’s $250m Crown Development on Clarence St sold out in just ONE day. 

Confidence will be high for a lot of developers heading into 2015, following a promising and for some, incredible, year in 2014.

Sales in Melbourne averaged approximately 31 days until confirmation of sale instead of the 35 day average of 2013 - apartments were seemingly selling themselves - developers didn’t have to discount their ‘asking price’ as much in comparison to previous years either.

For investors, it too, was a year to be remembered. Interest rates, on variable plans, settled at about 5% for the year, meaning investors had an easier year paying off their mortgages and loans. 

Property value increased by as much as 9% over the course of the year, and coupled with the stagnant interest rates, meant that real estate, bought as an investment, received a much needed helping hand. 

Gross rental yield only increased by 2% (a 7% differential between property value), as rental prices did not increase as much as the property value grew. 

At the UDIA VIC awards in December, Little Projects’ and Rothelowman’s collaboration, Tip Top, received a multitude of awards, including the 2014 UDIA VIC Urban Renewal Award, as well as the joint-winner of the High Density Development Award for ILK South Yarra. Little Projects has also  been nominated into the UDIA National Awards as well.

Meriton was also awarded, having been given the Housing Industry Association NSW award for buildings over 10 storeys. The HIA NSW Housing awards honour the highest achievements in the residential building industry, recognising outstanding workmanship, design and innovation.

The Richmond Malt, located underneath Melbourne’s infamous Nylex Clock sign, has been advertised by Colliers International for a developer to potentially buy. 

The year of 2014 has been a surprising, fun, and enjoyable one for off-the-plan apartments, and all of us here at are excited and motivated for what will be a busy and succesful 2015.