The median price difference between Melbourne units and detached houses has narrowed to between $150,000 for the first time in nearly three years. Experts believe that this is an important sign that the quality of new apartments on the market has improved.
The latest statistics from the Australian Bureau of Statistics show that the median unit price in Melbourne has increased from $522,500 at the end of March 2019 to $565,000 in the same period this year, an increase of 8.1% in a year. The median house price rose from $681,100 at the end of March 2019 to $706,000 in the same period this year, an increase of only 3.65%. The median price difference between the two has narrowed to $141,000, and this price difference has continued to shrink since June 2018. Australian Bureau of Statistics chief economist Bruce Hockman said Melbourne and Hobart were the best performing cities in the first quarter of this year.
Nerida Conisbee, chief economist at Realestate.com.au, said that the gradual narrowing of the price gap between detached houses and units is likely caused by the improvement in apartment quality. (In 2017, the Victorian Department of Planning issued the latest apartment design standards to improve the overall comfort of Melbourne apartments)
