Melbourne Apartment Market

[MelbGal]

This is very useful info. However hard to find apts with less than 20units in a block these days. I heard from delta that foreigners can buy resale landed with firb approval, do u happen to know the criteria? I am looking to invest $300-4xxk in Melbourne n have been advised to steer clear of cbd.

I came across this small unit development going up in Prahran that fits your price range and close to Chapel St. and think there might be some others in the local area.

Please do your own due diligence however.
http://www.realestate.com.au/property-apartment-vic-prahran-113374135

 

[TMNT]

Just curious I know everyone is saying prices a're falling but has anyone aactually bought one or know someone who'. s valuation did come up short??


As I browse docklands every couple of months in re.com and don't really notice any ddrops in price I don't take to much notice

oh and isn't it true that inner city outperforms the burbs over the long run? Or is that only houses

 

[ermat]

Can I access all recent actual sales figures from some source?
This would highlight any recent discounts, or are some sales figures able to be undisclosed?

 

[Deltaberry]

Docklands prices not falling? Haha

 

[Aaron_C]

Docklands prices not falling? Haha

The asking prices haven't...

 

[mylifeforauir]

Bump after a bit over a year.
Interested to hear people's views on the current apartment market in Melbourne. Just searching on realestate.com, it seems like prices in the CBD have remained pretty stagnent. Hard to know from the listed prices though.

I'm happy to keep saving up my money and wait for some bargains to come in the next couple of years. Has anybody seen any price falls, in existing or off the plan apartments?

 

[Aaron_C]

Not related to the topic but great username, got a few SC fans here

I wouldn't buy a CBD apartment for a long time to come...

 

[mylifeforauir]

Thanks, didn't think there would be much of a correlation between SC players and property investors.

That is precisely when I want to buy, when nobody else does.
It seems like there's still plenty of ppl wanting to buy though, somebody must be soaking up all the supply of these new developments.

 

[S.T]

Wasn't that the chant the protoss zealots made when you selected them? Wonder how good my memory is?

I was thinking of trying to pick an apartment up in a few years time as a PPOR, depending on what happens with prices.

 

[Aaron_C]

The issue is that there are thousands of apartments in the CBD that have been built, are being built and which will be built. There is simply too much supply. The only people buying these things are the foreigners because of FIRB rules. When they choose to sell it - they can only sell them to locals like you and I, resulting in a massive flood of properties and depressed prices for a decade at least....not a good idea imo.

 

[Aaron_C]

Wasn't that the chant the protoss zealots made when you selected them? Wonder how good my memory is?

Correct (10 chars)

 

[mylifeforauir]

The issue is that there are thousands of apartments in the CBD that have been built, are being built and which will be built. There is simply too much supply. The only people buying these things are the foreigners because of FIRB rules. When they choose to sell it - they can only sell them to locals like you and I, resulting in a massive flood of properties and depressed prices for a decade at least....not a good idea imo.

That is exactly what I'm hoping for and sounds like the perfect time to buy. So far it seems like prices have just stagnated, I'm hoping for some decent falls before I jump in. I suspect this may not happen until you have banks restricting credit for apartment purchases.


It's when the zealots first spawn if my memory is correct. They say all sorts of things if you keep selecting them.

 

[Aaron_C]

That is exactly what I'm hoping for and sounds like the perfect time to buy. So far it seems like prices have just stagnated, I'm hoping for some decent falls before I jump in. I suspect this may not happen until you have banks restricting credit for apartment purchases.

There's no point buying something and having no growth for 10 years. I implore you to reconsider. If you really want to live in the CBD and want to buy an apartment then ensure it's something higher-end because the small stuff is just badly compromised.

 

[mylifeforauir]

If markets were so easy to predict then I would wait until the 10th year of no growth and buy then. Instead all I can do is to make sure that when I buy, I'm getting decent value for the price I pay. Much more likely for that to happen when there is a massive oversupply and everyone is telling you not to buy then when the markets are going hot and everyone is suffering a serious case of FOMO.

I'm trying to do my research on where all the higher quality apartments are in the CBD but it's pretty hard to get any useful info. 90% of listings don't even include the size and past sales data is very limited.

Ideally, I'd want to get a short list of apartments I'd be happy to buy and monitor their sales over the next couple of years so I'll know what is a good deal when it pops up.

Any sources available, either paid or free, with databases that are searchable and can be filtered by criteria such as size and past selling price?

 

[Aaron_C]

But it's not just me saying that. There are literally thousands of apartments in the mix. And I haven't even counted Southbank or Docklands...

It's your money, your call but your money is better spent elsewhere.

 

[mylifeforauir]

That's exactly my point lol. I think we are in total agreement on the state of the market.

I just want to buy the best apartment I can for the lowest possible price. If not when there's massive oversupply and everyone wants to sell and thinks it'll be the worse investment in the world, then when?

My money is better invested elsewhere, and I intend to do so by borrowing agianst the money I put into the apartment.
It's not better spent elsewhere though, especially on a house somewhere that I have no desire to live in.

 

[Deltaberry]

Apartment = over supply

Apartment price = overvalued

Why would I pay $500k for 60sqm, when I can get a 120sqm house in a comparable if not superior area for $750-850k? If you want something for value, buy a $750-850k house at 120sqm.

Few years ago, I picked up two ~400sqm living area houses in a location vastly superior to and grossly closer to Melbourne Central than any grade A apartment development in the CBD, for $1m each. That's almost 10x the size of a standard apartment. And fully renovated with 5 carspots.

 

[Lou Reed]

@mylifeforauir-Balaclava,Ripponlea,St kilda east etc.

Cheers

 

[woohoo]

Apartment = over supply

Apartment price = overvalued

Why would I pay $500k for 60sqm, when I can get a 120sqm house in a comparable if not superior area for $750-850k? If you want something for value, buy a $750-850k house at 120sqm.

Few years ago, I picked up two ~400sqm living area houses in a location vastly superior to and grossly closer to Melbourne Central than any grade A apartment development in the CBD, for $1m each. That's almost 10x the size of a standard apartment. And fully renovated with 5 carspots.

Well the difference is of course easy - the location. If you live in an apartment in the CBD, it is "Convenient to anywhere in the city". If you buy a large house in Sth Yarra, be prepared for traffic jams and travelling time, and money spent on tram/train tickets.
If you live in the city, just walk a few blocks and you're in Chinatown or your favourite restaurant or movie theatres and Bourke Street Mall within minutes.

This is why most overseas students and people who are new to Melbourne like to live in the CBD. I myself have lived in the CBD and Southbank most of the time during and after studying in Melbourne Uni. Melbourne city has quite a large number of universities, tafe and colleges, hence popular living place for students.

 

[woohoo]

Melbourne is voted the Most Livable City in the world again and again.

If a 1 bedroom in Alexandria Sydney is fetching $650,000, very soon Melbourne will eventually catch up.

If you're looking for a neutral or positive geared property, Melbourne CBD 1 bedrooms can give you that. Imagine you buy a 1 bedroom around $380,000, and you can rent out for $400 pw - $450 pw ( furnished).

Interest repayment say: $1200 or 1300 per month
Rental per month : $1950 per month

I think it's pretty good rental return. No negative gearing. Hence, the people who bought 1 bedrooms in UWS are not as silly as Deltaberry claimed them to be.