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The latest happenings in the Melbourne property market. For our Essays and The Secret Agent Report, see our Research page.


Category Archives For: Apartments

The Secret Agent Report – Co-Living

We have just released our latest Secret Agent report!

This month, Secret Agent takes a closer look at the co-living spaces that are emerging across the world. While this trend is something we have seen before, it has re-emerged in a modern form and is changing the way people think about living – and working.

Access the Co-Living report now!


Price Per Square Metre of Melbourne Penthouse Apartments

Open plan living room of Melbourne penthouse apartment

Melbourne penthouse apartment, realestate.com.au

This week, Secret Agent takes a closer look at the price per square metre of Melbourne penthouse apartments.

Besides occupying the top floor of a medium to high rise building, for an apartment to be considered a penthouse, it also had to have a distinguished floor plan.

Out of 1,908 apartments sold around inner Melbourne since January 2016 to May 2017, there were only 21 penthouse apartments. All of these were new, post-90s builds except for 2 warehouse conversions. These penthouses were concentrated around the CBD, inner East and inner South suburbs.

Note that our results were skewed towards the sub-$3 million penthouse market, as information on apartments sold above this value is generally less accessible. Most of the apartments in our study are not whole-level penthouses.

Suburb Penthouses Non-Penthouses
Average sale price $1,739,048 $590,655
Average overall PPSM** $11,076 $8,724
Average PPSM for 2 bed $11,544* $8,669
Average PPSM for 3 bed $11,132 $8,877
Average PPSM for 4 bed $10,187* $10,138
     
Median internal area for 2 bedrooms 139sqm* 69sqm
Median internal area for 3 bedrooms 157sqm 118sqm
Median internal area for 4 bedrooms 192sqm* 198sqm
Median outdoor area 47sqm 7.5sqm

* Based on less than 5 sales,  ** PPSM refers to price per internal square metre

Table 1   Average prices per square metre and median sizes in penthouses versus non-penthouses around inner Melbourne

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The Secret Agent Report – Rent: Apartments

We have just released our latest Secret Agent report!

This month, Secret Agent takes a look at the performance of inner Melbourne apartment rental yields from 2012 to 2017. Our report compares median apartment prices to median weekly rent to find out which suburbs returned the highest yields in the past year.

Unlike houses and townhouses, apartment prices have remained relatively stable in recent years. Over 1,500 apartments leased between February 2012 and May 2017 were included in the study sample. This includes 600 one bedroom, 840 two bedroom, 80 three bedroom and 4 four bedroom apartments.

Access the Apartments Rent report now!


What Counts in Small Apartment Buildings

While the cost of standalone and semi-attached houses in Melbourne continue to skyrocket, apartments have only had minor price changes over the past 12 months. Further, as houses continue to become a rarity, apartment supply is steadily increasing. Many people will have to start considering apartments if they wish to live in the inner city.

For people used to living with a backyard and having adequate distance from their neighbours, moving into a high-rise apartment building is out of the question. But there is another option: boutique apartments, usually between 8 and 40 apartments spread over no more than four levels, typically built in the 1960s to 1980s. They offer a middle ground between the freedom and privacy of standalone houses, and the affordable yet crowded environment of high rise towers. Read the full post


Apartments Price Per Square Metre Update Q1 2017

Inner Melbourne average Q1 2017: $8,882/m2
Inner Melbourne average Q1 2016: $8,622/m2
Percent annual growth: 3.02%

On average, apartments increased in price by $260 per square metre, or 3% over the past year.

One bedroom apartments have remained about the same in nominal terms (which means they have fallen in value in real terms) and are now the cheapest apartments at $8,650 per square metre. All other apartments increased in price, with 4 bedroom apartments now averaging $11,450 per square metre. Not many of these properties get sold each quarter, so prices tend to fluctuate a bit. Similarly, three bedroom apartments increased in average price by about $1,000 to $9,400 per square metre in the first three months of 2017. Two bedroom apartments are also up slightly ($8,900/m2), while studios were more expensive than 1 and 2 bedroom apartments over the past three months ($9,200/m2). Read the full post


The Secret Agent Report – Capital Growth Update

We have just released our latest Secret Agent report!

This month, Secret Agent analyses the updated capital growth index for the first quarter of 2017. The index tracks all resales of properties in inner Melbourne suburbs since January 2000.

By using only resales of the same, unchanged properties over time, the index tracks the true capital growth of properties in Melbourne, taking out factors such as subdivisions, extensions and any other alterations, all of which affect measures of average prices.

Access the Capital Growth Update report now!


Better Apartments: Room Depth

This week, we continue to explore the results of our Better Apartments Design Standards study.

One of the factors that had a very high pass rate was maximum room depth. However, given that this standard simply measured whether the depth of habitable space was less than a fixed value (1.5 times the ceiling height, or 9.7m if there is a rear kitchen, see Figure 1), this may not necessarily be a good thing. Smaller apartments are more likely to pass simply because if room dimensions are smaller, apartment depth will naturally be smaller too.

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Better Apartments: Room Dimensions

As part of the Victorian Government’s Better Apartments Design Standards, three new rules were introduced for minimum room dimensions. These determine the minimum width and depth of main bedrooms, additional bedrooms as well as minimum size and dimension of living areas. For more detail, refer to our latest report. We sampled 3000 apartments built over the past 6 years in inner Melbourne.

Our research finds that if the new standards were already in place when the apartments were developed, only 7.7% (231 apartments) would have passed the minimum requirements for all three room dimension standards. Read the full post


The Secret Agent Report – Better Apartments: Before There Were Standards

We have just released our latest Secret Agent report!

This month, Secret Agent reviews the quality of apartments built in the last 6 years and compares them with Victoria’s new Better Apartments Design StandardsIf constructed today, how many of these apartments are actually compliant? In which criteria do we observe the highest fail rates?

Access the Better Apartments: Before There Were Standards report now!