Melbourne's heating up...

[Deltaberry]

People have picked Footscray for a long time.

Unfortunately it has failed to gentrify and moved from one investor-adverse demographic to another. And despite being 5km from the CBD, is separated by 2km of oil refineries and sheds etc.

 

[DavidMc]

My main question in relation to the Docklands/Southbank oversupply issue is I wonder how (if at all) this will effect the inner established areas?

Surely it will have at least a little downward pressure on similar style accomodation in/around your South Yarras/Carltons and so forth?

As crappy as Southbank/Docklands is it still looks appealing from Google Earth and many new Melbournians will rent there (especially as the rents fall), I couldn't imagine the price difference ever becoming too great.

 

[Deltaberry]

Yes you are half correct. Apartment prices in CBD, Carlton, South Yarra etc should also be adversely impacted.

Rental returns from houses with land component would also be impacted. But would it really impact value? Hard to say. When 50,000 people are living in an apartment and you have your own pad downstairs on your own land, that's pretty sweet and if your house ever sold for the same $/sqm as apartments, you'd retire next year.

More importantly, if you have a shop and next door there are 50,000 new residents, the rent on your shop is going to go up 5x.

 

[zed_kid]

I own older style apartments in SY and Toorak, and yes rents are affected, CG not so much