APARTMENT prices are falling in Australia’s CBDs and it is a major cause for alarm.
Prices in our major city centres dropped by an average of 6.3 per cent in the 12 months to July, according to CoreLogic figures.
Every capital city CBD posted a decline in growth but where the largest declines are coming from is even more telling. It is being driven by our two highest performing capital cities.
Sydney CBD apartment prices tumbled 9.1 per cent over the 12-month period while Melbourne CBD units dropped in price by 8.4 per cent.
A column in The Australian published on Wednesday cited a one-bedroom apartment in Melbourne recently selling for $161,000.
The asking price for that $161,000 apartment in the general market would have been in the order of $550,000, the column claimed.
“Clearly, one seller was sick of the fact that their apartment was not selling and simply put it on the market for sale to the highest bidder,” the column read.
This is because we are seeing more and more large apartment developments coming into the market, prompting fears of an apartment oversupply.
