It seems that not everyone is as much of a fan of The Springs in Rivervale as PropertyESP is and so we conducted an analysis of settled sales from January 2014 – June 2016 to just work out what was really happening in this location.
Looking at 348 sales in that 2.5 year period there were a number of positive points that we felt should be brought to light.
By far the two bedroom sales have been ahead of one bedroom, with 2 bedroom apartments representing 55% of sales in 2014, then 60% in 2015 and 77% in the first half of 2016. This compared to one bedroom sales of 45%, 40% and then 23% for the same correlating periods. This could be heavily influenced though by what is on offer.
Over the two year period, median sales price for the apartments in The Springs has been $501,000 and price per square metre of $4910.
One bedroom sales achieved a median sales price of $420,000 and two bedroom $538,000. Despite this price variation, when you compare price per sqm it is evident that the two bedroom apartments achieve the price they do, purely based on size.
Between 2014-2015 one bedroom prices only fell by 6% while two bedroom apartments fell by just 2%. This was also reflected in the price per square metre results.
There was also a small price premium for those properties located opposite green space and the river over those located further away.
However, just like Scarborough, The Springs is completely vanilla in its offering. The majority of apartments sold were 2 bedroom or 1 bedroom apartments. 97% of the sales were of apartments where the apartment complex had an outdoor entertaining area and 90% a gym and pool. As such, having the amenities such as gym, pool or entertaining area had no influence over the price per square metre between the projects.
With the area already offering a large number of apartments, any new entrants should be considering alternative amenities as well as various bedroom configurations in order to provide a distinctive point of difference.
While The Springs appears to be weathering the current market with a degree of robustness, it is evident that in order to stand out from the crowd, incoming developers need to be more creative in their offering.
It will certainly be interesting to see how The Springs evolves over the next 12 months with the opening of the 4.5 star Aloft hotel and then the stadium in 2018.
Regardless, this is a location which is sought after due to its proximity to the river, freeway, airport, stadium and casino and on that basis is a precinct to be closely monitored over the next 18 months.