High-rise apartment prices lag houses by 50 per cent in some suburbs

Over the last 10 years, high-rise apartment prices in Melbourne and Sydney have underperformed houses by more than 50%, and if you have been listening to our education for the last 15 years, this would come as no surprise whatsoever!

Core logic data indicates that Melbourne’s high-rise apartment market is by far the worst of every other city in Australia. As we’ve been banging on about for years, high-rise apartments rarely make the grade as quality investments, if your goal is capital growth. Low land-to-asset-ratio’s is just one reason for this as we have opined in an article for Domain, in Podcast Ep#16 “unpacking land to asset ratio” and alongside property professionals CateBakos and Petewargent on landtoassetratio.com.au. 

It seems that this message is starting to sink in for the broader public. A survey of property investors has shown that investors are shying away from off-the-plan purchases. This is due in part from highly-publicised failures and defects in high-rise apartments, such as the Opal Tower in Sydney.  

Our good friend, Peter the ‘Property Professor’ Koulizos, Chairman of Property Investment Professionals of Australia and Co-host of The Property Planner, Buyer and Professor Podcast highlights the issues surrounding high-rise apartments and why you should stay away from them.  

Melbournehttps://www.smh.com.au/money/investing/melbourne-high-rise-apartment-prices-lag-houses-by-50-per-cent-in-some-suburbs-20191011-p52zru.html 

Sydneyhttps://www.brisbanetimes.com.au/money/investing/sydney-high-rise-apartment-prices-lag-houses-by-50pc-in-some-suburbs-20191009-p52z64.html 

By |2020-02-11T16:35:29+11:00January 23rd, 2020|

About the Author:

David Johnston
David is the Founder and Managing Director of Property Planning Australia, author of ‘How to Succeed with Property to Create your Ideal Lifestyle’, co-author of ‘Property for Life – Using Property to Plan Your Financial Future’ and a widely-published media commentator. With more than 20 years of experience, David is passionate about educating others to make informed, and ultimately, more lucrative property investment decisions. David established Property Planning Australia in 2004 – with the vision to educate and empower Australians to make successful property, mortgage strategy and money management decisions.  Property Planning Australia’s operations have earned acclaim and national industry awards for its unique fusion of property planning, education, money management, mortgage strategy and risk management. All supported by multi award winning customer service.