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ISCOVER
Staff Reporter
Money conscious buyers are steering away from houses and choosing to buy affordable units in Randwick.
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According to new research by PRDnationwide, there was a 24 per cent decrease in house sales in the region over the past 12 months.
Oded Reuveni-Etzioni, PRDnationwide research analyst, said there was an increase in popularity of strata titled dwellings and it was having an impact on the growth in the median unit price, increasing by an average of 4.4 per cent per annum in the past five years.
“While units maintained their appeal to price conscious buyers, the median house price contracted by 11.1 per cent in the 12 months to April,” he said.
Softness toward the top end of the market is the likely cause of the sharp decline in the median house price over the past two years.
The researcher said both the house and unit rental markets continued to strengthen.
“In the 12 months to March 2012, the median price to rent a three bedroom house increased by 4.7 per cent and 5.8 per cent for a two bedroom unit,” he said.
He believes uncertainties about the direction of house values are the reason for the subdued market conditions.
“Affordability remains a major concern for tenants, who resort to creative measures such as moving in with family or living in a shared accommodation,” he said.
