The average cost of apartments in Australia is predicted to drop between now and 2020, while house prices down under are likely to rise.
These estimates come from a new report published by QBE Insurance, which predicts that apartment prices will fall by seven per cent in Brisbane, five per cent in Melbourne and four per cent in Sydney over the next three years.
Apartments in these cities are highly sought after, so a fall in price tags could present a good opportunity to property investors, who may want to purchase flats as prices drop in the hope of making a strong return on their investment in the future.
At the same time, house prices are expected to rise, so investors might also want to consider buying these sooner rather than later, before prices shoot up.
QBE Insurance predicts that average asking prices in Canberra could rise by as much as 16 per cent between now and 2020, while those in Hobart could increase by 10.8 per cent.
Meanwhile, Melbourne house prices are expected to rise by 10.2 per cent and those in Brisbane by some 7.1 per cent.
Phil White, chief executive officer of QBE Lenders' Mortgage Insurance, explained that if these predicted drops and rises become a reality, they could transform Australia's property ownership landscape.
"With so many Australians priced out of the housing market, the Australian Dream of owning property is increasingly turning to high and medium-density apartments," he commented.
Apartment units currently account for almost half (46 per cent) of residential construction projects in development, so lower prices could see thousands more people able to afford their own homes for the first time.
Mr White added: "Units contribute to a greater share of the market as changing lifestyles and affordability dictate property choices. Encouragingly, that dream should become a reality for more Australians, with improving affordability overall."
