If the median price for a 2 bed room unit in a particular suburb is $325k, what would be a fair price premiun for a comparable new property? How much more should one pay for a 2 bed room unit in a new development in the same suburb?
Really depends on how many other similar new developments are for sale in the suburb as it is driven by market price due to different forces of supply and demand for new developments. Its a different market to second hand houses or second hand units.
A lot of developers get into trouble as they can only get a sale price determined by the market price buyers are willing to pay rather than a set formula based on land value plus building costs plus desired profit.
The median price is a skewed assessment of the market – skewed based on the last year's sales. That is, if there have been no new projects then the median will be much lower than price of newer units, if there has been alot of activity for new projects, then the median will be artificially high.
It is best to understand how the numbers work, analyse all of the sales yourself eg get all of the sales for 2 bedroom units, select all sales of units similar to the market that you want to assess, then determine the median (you may wish to weight the prices based on floor area, garage, quality, locational factors etc). By doing this you are then getting a better picture of the market segment you are considering not just a skewed view of all sales.
There are no set parameters for fixing prices. Rates primarily depends upon the location, demand, escalation of prices in neighborhood, developments and the area (covered and open) etc. Some old property may cost more than new property.
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