New Melbourne Docklands Apartments
- Thread starter Mthis
- Start date
Avoid for all the reasons you stated. If you really wanted to live in the city, either rent...but then if you really, really wanted to buy something, you'd still be better off buying something right in the CBD instead of Docklands. And make sure it's in an older heritage style building. The only apartment I'd consider buying in the CBD is a really grand warehouse style apartment, which probably wouldn't come cheap anyway. Those are the only ones that will really hold value.
Both. You can still get good rents - my 1 bedder that I paid $360k for is returning $420p/w - but this will be affected over time as well.
Add a further 750 apartments finishing construction in the next 12 months and another 1,500 apartments looking at starting construction over the next 12 months. This will mean even more supply of units you will be competing with.
Plus if you are 1 of 500 units and you bought to lease out when the construction has finished and 60% are going to be rented that is 300 units that are up for rent at the same complex at the same time and the tenant will be comparing all the properties to get the best deal. Which means you either need to have a unique unit (the top level penthouse) or compete on price.
Put yourself in their shoes, would you pay $100 a week to live one level higher if it had the same features. Probably not... How about $50, $20, $10, $5 or nothing?
If the unit above was asking $500 and the unit below was asking $495 the tenant might use the unit below to reduce the unit above in price. Even if the unit below drops the price to $480 and the unit above is still $500 I am sure the tenant would go to the unit above and be like hey ill give you $475 pw for your unit or ill go downstairs.
Remember each week the place is vacant it is costing you $500 pw in lost income and for the difference of $10 pw less you are better accepting it today to get someone in rather than wait for the extra $10. Cause you might win the battle of getting $10 a week more but if it took you one month to obtain it then you would need to have that person in there for 4 years to be in the same spot (without anyone increasing rents).
TLDR - RUN!!!!
Plus if you are 1 of 500 units and you bought to lease out when the construction has finished and 60% are going to be rented that is 300 units that are up for rent at the same complex at the same time and the tenant will be comparing all the properties to get the best deal. Which means you either need to have a unique unit (the top level penthouse) or compete on price.
Put yourself in their shoes, would you pay $100 a week to live one level higher if it had the same features. Probably not... How about $50, $20, $10, $5 or nothing?
If the unit above was asking $500 and the unit below was asking $495 the tenant might use the unit below to reduce the unit above in price. Even if the unit below drops the price to $480 and the unit above is still $500 I am sure the tenant would go to the unit above and be like hey ill give you $475 pw for your unit or ill go downstairs.
Remember each week the place is vacant it is costing you $500 pw in lost income and for the difference of $10 pw less you are better accepting it today to get someone in rather than wait for the extra $10. Cause you might win the battle of getting $10 a week more but if it took you one month to obtain it then you would need to have that person in there for 4 years to be in the same spot (without anyone increasing rents).
TLDR - RUN!!!!
Great way to lose $100k. Or you can just give it to me which would at least make a forumite happy.
I spent a week around docklands recently.Very plastic,concrete jungle which was really not appealing at all.No way i would live there,the wharf food set up was nice,just not appealing.
Docklands is like the episode of the Simpsons where Bart sells his soul to Milhouse. Everything's there, but there's still something missing.
There was a big fire recently, in one of the Docklands apartment tower.
It revealed the major issues with the quality of construction of the building.
I suppose that majority of new buildings have a flashy look, but poor quality.
http://www.mfb.vic.gov.au/News/MFB-investigation-report-on-the-Lacrosse-Docklands-fire.html
http://www.abc.net.au/news/2015-04-...d-building-contributed-docklands-fire/6426588
It revealed the major issues with the quality of construction of the building.
I suppose that majority of new buildings have a flashy look, but poor quality.
http://www.mfb.vic.gov.au/News/MFB-investigation-report-on-the-Lacrosse-Docklands-fire.html
http://www.abc.net.au/news/2015-04-...d-building-contributed-docklands-fire/6426588
Hi
Hi,
I would be avoiding that area like a plague. Unfortunately there are to many apartments that have been built in the area but here are some challenges.
1) There are so many empty apartments already for both rent and sale.
2) The area seems to be a Ghost town and even shops are struggling to survive.
3) It a shame that the docklands has struggled
Hi,
I would be avoiding that area like a plague. Unfortunately there are to many apartments that have been built in the area but here are some challenges.
1) There are so many empty apartments already for both rent and sale.
2) The area seems to be a Ghost town and even shops are struggling to survive.
3) It a shame that the docklands has struggled
Yeah,Classic!!!!Mr Burns will fix it!!
Docklands
Ghost town is an apt description.
How did the manage to get the Docklands plan so wrong? It feels like its missing a heart.
Ghost town is an apt description.
How did the manage to get the Docklands plan so wrong? It feels like its missing a heart.
Hi,
I would be avoiding that area like a plague. Unfortunately there are to many apartments that have been built in the area but here are some challenges.
1) There are so many empty apartments already for both rent and sale.
2) The area seems to be a Ghost town and even shops are struggling to survive.
3) It a shame that the docklands has struggled
I spoke to a BA about a year ago telling me how he "timed the market" with Docklands. Is there such as thing as this? The prices are probably the same as they were 15 years ago...Yeah PASS!
With lender tightening on investors both locally and foreign, the already over supply of apartments in Docklands coupled with the ridiculous, dare I say downright STUPID amount of new stock coming into not just Docklands but the general Melbourne inner city market and I think you have an almost certain chance the property bubble within Melbourne metro will burst.
With lender tightening on investors both locally and foreign, the already over supply of apartments in Docklands coupled with the ridiculous, dare I say downright STUPID amount of new stock coming into not just Docklands but the general Melbourne inner city market and I think you have an almost certain chance the property bubble within Melbourne metro will burst.
