Interesting article from Terry Ryder re: inner city over supply

he makes a good point. As I keep saying... it's the imbalance between supply and demand, not things like 'it's a great place to live', population growth is huge or the 'fundamentals' look awesome
 
You look at a 30 year cycle,and versions of this get repeated and rediscovered everytime,the CBD has worked very well for me,a lot better then several mining properties in central Qld..

So I guess yes, you are right, investing in CBD is definitely a profitable choice in any major cities, IF you have the money to get into the property ;-)

In my case Sydney CBD is the nearest Metro in my mind for investing.

Reading this document:

http://www.urbangrowthnsw.com.au/do..._PROP_C2E_GlobalPrecinctOpportunity_PRINT.pdf

from this page: http://www.urbangrowthnsw.com.au/wo...h-urban-transformation-transport-program.aspx

certainly make sense to buy the apartment or unit in the CBD area for a CF+ type of investment.

For a capital gain it would be too much I guess, because the price is already went through the roof.
 
its pretty much been an over supply in inner city since the 90s, obviously if you had bought in in the 90s or 2000s, youd be ahead of your purchase, but so would just about every other property!
 
So the conclusion is that, Sydney CBD investment property potential is not a problem, because the demand will still be available for anyone who wants to work and live near the city CBD ?

Therefore when buying Sydney CBD apartment off the plan, we just look for the increasing rental yield to beat the bank interest rate.

One thing that I know the Cons / Disadvantage with this new OTP apartment is that the strata is way too expensive more than $1400 up to $ 2000 per quarter.
 
No it's not that people want to live near the Sydney CBD per se. Melbourne CBD is arguably just as if not more interesting but it's not a good place to invest. The difference is supply. It's almost always about supply.

10-15 years ago Melbourne CBD was filled with old warehouses, empty blocks of land, small crappy buildings. You never saw this in Sydney. There's just no space to build like mad. This is what it comes down to.

As I said the difference between Syd and the other cities is that apartment building is spread throughout the city, and there are also many satellite cities like Paramatta which is somewhat unique to Sydney like Paramatta, Chatswood. Only now are you beginning to see similar things in other cities, take Brisbane for example. Look at the major hubs - Sunnybank has literally no high rise apartments. Upper Mt Gravatt was only recently rezoned to allow it. Not long ago it would have been weird to see high rise apartments outside of Brisbane CBD but this has been the norm in Sydney for quite some time. But for the here and now, apartment building in most other capital cities is concentrated to the CBD which makes it an apples and oranges comparison to Sydney.

So it's not a CBD vs non-CBD issue. It is and will always be about supply.

Would I invest in Sydney CBD? Yes, there just isn't and could never be an abundance of apartments here which is reflected in the high prices.
 
So I guess yes, you are right, investing in CBD is definitely a profitable choice in any major cities, IF you have the money to get into the property ;-)

In my case Sydney CBD is the nearest Metro in my mind for investing.

Reading this document:

http://www.urbangrowthnsw.com.au/do..._PROP_C2E_GlobalPrecinctOpportunity_PRINT.pdf

from this page: http://www.urbangrowthnsw.com.au/wo...h-urban-transformation-transport-program.aspx

certainly make sense to buy the apartment or unit in the CBD area for a CF+ type of investment.

For a capital gain it would be too much I guess, because the price is already went through the roof.
That's the good part about living inner city for over 35 years,you get to see all the change that has happened and still happening,the old queenslanders on over 1000sqms that were levelled in the 1980's to make way for the six-pack Greek built flats,those same flats now are being levelled to make way for 8 levels up depending on location land area,and it will never stop..
 
I think you may want to watch out buying in Zetland, Roseberry, Alexandria, Mascot (Around that area) though... It has So many apartments coming down the pipeline.
 
I think you may want to watch out buying in Zetland, Roseberry, Alexandria, Mascot (Around that area) though... It has So many apartments coming down the pipeline.

throw green square in there. The mirvac developments seem to be getting absorbed really well. I personally wouldn't have the balls to buy there. But for a ppor who cares? it's close to the city, transport etc.

Whats everyone's opinion on this area? Been discussed in other threads but I'm very interested to see how this area will do in the next 5 years
 
throw green square in there. The mirvac developments seem to be getting absorbed really well. I personally wouldn't have the balls to buy there. But for a ppor who cares? it's close to the city, transport etc.

Whats everyone's opinion on this area? Been discussed in other threads but I'm very interested to see how this area will do in the next 5 years

I'm very keen what other think about these area too ( I.e. around zetland, Alexandria, roseberry, etc). recently talking with my mates and we have different opinions. He believes zetland will overtake chatswood in 5 years time, and there is no over supply issue over there. He bought otp in 2014 2 bed for around 800k, and has probably make 100k gain by now.
 
Funny how the two suburbs mentioned in oversupply article - gladstone and wyndham were both on his hot spots lists a few years back.....
 
everyone knows southbank and docklands are the best investments...you know the OTP flogged off to millionaire overseas buyers.:D
 
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