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Units Outshine Houses in Melbourne for Value Growth

By Jamil Allouche

In encouraging news for investors of Coburg real estate, recently released information from RP Data has shown units in Melbourne have outperformed houses for value growth over 2013.

The RP Data-Rismark Home Value Index for December 2013 found value growth for units over the year was 8.7 per cent in Melbourne overall. This is slightly higher than the overall increase for houses, which settled at 8.5 per cent at the end of the year.

However, on a national scale, unit values increased by 9 per cent, while houses saw growth of 9.9 per cent throughout 2013.

In November, the Real Estate Institute of Victoria recorded a rental vacancy rate of 2.9 per cent across Melbourne. This is a much lower result than what was recorded in earlier in the year, where the rate was 3.6 per cent.

With vacancies in the Melbourne rental market tightening towards the end of the year, purchasing an investment property in Brunswick or surrounding suburbs could be a lucrative option for investors.

At the same time, weekly median rents for both apartments and houses increased over the month of November – another encouraging result for investors thinking about expanding their portfolios.

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