Cleveland’s coastal allure and convenient amenities have made it a magnet for both young professionals and families, and Gemma Coady from LJ Hooker Property Centre believes this is a key driver for price rises in Cleveland – particularly for units and townhouses.
The result has been a surge in construction and sales of modern, well-designed units and townhouses, reshaping Cleveland’s skyline.
Pricefinder data has shown Cleveland units have enjoyed growth of 11.5 per cent in the last 12 months across 189 sales. The current median value of these properties is $620,000, up from $556,000.
Not only do units currently offer an ideal home for owner occupiers but are also a very attractive investment option. With a median yield of 4 per cent and rental income of $620 per week, investors are leaning towards this type of property due to its low maintenance and striking rental return.
Ms Coady said units she has had on market last on average seven days, further proving the high demand.
“An agent having knowledge of the suburb and fresh approach is a key attribute when achieving premium prices and speedy results for sellers,” she said.
“The remarkable surge in buyer demand for the unit and townhouse segment can be attributed to a number of critical factors, including the increase of interest rates, shifts in borrowing capacity, the ever-evolving dynamics of the current market and the low levels of available housing stock.
“These intricate factors have ignited a notable influx of buyers in pursuit of properties within this highly sought-after price range.”
Limited housing inventory, or low levels of available stock, can trigger a sense of urgency among buyers.
When there are fewer options on the market, buyers may feel compelled to act quickly to secure a property that meets their needs. This competition among buyers can lead to multiple offers, bidding wars and higher prices.
The convergence of these factors can create a perfect storm of buyer demand for units and townhouses, leading to increased sales activity and upward pressure on prices.
As a result, the real estate market is experiencing heightened competition and a sense of urgency among buyers seeking properties within this specific price range.