Impact of Apartment Supply on House Prices

In this brief we have assessed all 20 saleable apartment projects that completed construction in 2015. After checking the existence of ten years of sale data for nearby houses we were left with 10 unique suburbs for assessment.

The research found that most apartment projects had occurred in suburbs that saw price growth ahead of the regional average of 35%.

There was a noticeable distinction between the quality grade of the completed apartment project and the house price growth in its suburb. Suburbs that experienced Prime grade project deliveries had growth of 56%. In contrast, suburbs that experienced Secondary grade project deliveries had growth that was on par with the regional average.

The results of the research imply that high quality apartment supply is not a drag on surrounding house prices, instead, it is more likely to support, and potentially help drive, long term value growth across the surrounding suburb.