New data showing a sharp increase in building approvals for apartments is an early indication that market confidence is returning. And it also suggests apartment owners planning to upgrade may want to make their move in the medium term.
A jump of 56.6% in building approvals for units was registered by the Australian Bureau of Statistics in its most recent December numbers.
The result was the major contributor to the overall 18.5% increase in residential dwelling approvals compared to November. Approvals for houses went backwards by -2.3%.
The most significant growth in approvals for apartments was seen in NSW (48.4%) and Victoria (20.7%). Housing approvals were less impressive, with NSW and Victoria recording -4.8% and +0.3% respectively.
It is a good idea for apartment owners to keep an eye on the supply of units coming into their suburb as major local developments may risk reducing your value due to oversupply.
These latest ABS numbers are a gentle reminder owners should maintain vigilance to avoid getting caught in an oversupply scenario.
On the plus side, the recent market recalibration has seen apartments retain their value far better than houses.
Below are six tips for selling an apartment successfully. If you’re considering a sale shortly, we’d be delighted to hear from you. Strong buyer interest exists for good, well-maintained apartments in our area.
Active agent
Selecting an agent with experience in selling apartments is crucial. Those who are active will have many potential buyers on their database. This may help you to sell quickly and minimise costs.
Right partner?
The best agent will be a good communicator with experience in selling apartments similar to your own. They should offer valuable advice on preparing your apartment to attract buyer interest.
Selling method
Work with your agent to decide whether you should sell by private treaty or go to auction. That discussion will be influenced by the demand for your style of apartment in your suburb. Commitment
For a successful sale, you need to be committed to a pristine presentation of your apartment. Don’t forget to declutter if you have a parking spot with storage.
Space is critical
Take out any oversized furniture that makes the living area and bedrooms feel small. Your furnishings should use every square metre otherwise buyers will see “dead space”.
Investor view
If you’re an investor, you’ll likely achieve a better result with an empty apartment. Owner-occupiers tend to back off units with a tenant because it’s unknown territory for them. Selling to another investor wouldn’t be so problematic, but they’d be a smaller percentage of your potential buyer pool.