Kelvin Grove Unit Market Property Watch Q2 2012
The median price recorded in the six months to February 2012 was $485,000, representing a solid 15.5 per cent increase from the corresponding period in 2011. The five year average annual growth rate was a notable 6.7 per cent, which is rather impressive considering softened capital values and the markets general underperformance subsequent to the Global Financial Crisis. The recent performance of the market is a testament to the desirability of the suburb, from both a liveability and investment perspective. Strong rental growth (8.5 per cent average annual growth over the past three years to March 2012 quarter for 2 bedroom units, and 5.8 per cent average annual growth over the same period for 1 bedroom units) demonstrates both the growing demand for accommodation within the suburb and attractive investment yields for investors.
It is anticipated that activity will be sustained at this level throughout 2012, as reductions to interest rates and a change in government contribute to improved confidence in the market. The reinstatement of transfer duty concessions by the State Government on the 1st of July 2012, may contribute to increased sales volumes in the successive half year period. This is however unlikely to provide stimulation in the market, rather accommodate to those would-be buyers who have been prolonging their purchase until such time the concession is reinstated.