Market Insights
EXPERTS DISCUSS MARKET FOR BLOCKS OF UNITS
Article supplied by Ray White Research
Hundreds of viewers tuned in to what RWC’s latest Between the Lines webinar, where a panel of experts discussed the markets for blocks of units.
Ray White head of research Vanessa Rader hosted the webinar and was joined by RWC Western Sydney director Joseph Assaf and Ray White Special Projects Queensland executive James Hanley. Ms Rader said the block of units market had become particularly interesting in the last few years with population growth and the housing crisis, with the western Sydney and south east Queensland markets seeing an increase in demand for these assets. “We’ve seen prolonged long term low vacancies, the rental growth has been really quite outstanding, and capital appreciation of product. So a lot of people have jumped back into the residential asset class, and blocks of units are quite an interesting and lucrative way of going about it,” Ms Rader said. While unit blocks are commonly made up of four to six units in south east Queensland, the eight to 12 range was more common in western Sydney. “In Brisbane they are typically very defensive assets suited to a super fund, a private investor or a mum and dad type investor, someone looking for more than just a unit or a house,” Mr Hanley said. “We’ve more recently seen a big influence in the developer market trying to buy these properties for future pipeline control. “So that might be a two to five year hold where they get the benefit of strong-holding income, they get to clear a very well positioned site, they can get their approvals through while they have the income. “They have very little risk profile from a banking perspective because of their strong returns.”
12 – September / October 2024
Powered by FlippingBook