Maroubra Area Property Watch Q2 2013

The Maroubra Area is bordered by Maroubra and Coogee in the east, the Southern Cross Freeway in the West and Botany Bay to the South. The Area is located in the local council areas of Botany Bay and Randwick. The Area is enjoying strong construction activity, with developments in the Prince Henry Hospital Site in Little Bay entering advanced stages of construction while various sites in Botany are selling off-the-plan.

Units and townhouses dominated the Areas market, with strata-titled dwellings representing between 60 and 72 per cent of sales since March 2001. The Sales Cycle graph depicts sustained growth in median unit price since September 2009, with a 5.3 per cent growth in the 12 months to March 2013, closing the period above the $600,000 mark for the first time.

The Unit Price Point chart over the March 2013 half year suggested that expansion in the share of units transacting for $600,000 plus was the largest contributor to the rise in median price, while price points under $600,000 contracted. Unit activity has been declining since March 2009, with 409 transactions recorded in the six months to March 2013.

While affordability is one factor contributing to the contraction in sales volumes, market uncertainty remains the main factor, with only a moderate growth in price for existing stock between March 2010 and September 2012. That said, units that were sold off the plan did not appear in the data and were likely to boost transaction numbers in the next 12 months. Furthermore, higher asking prices for new units are expected to further lift the median unit price over the short and medium term.