Research Reveals Capital City Apartment Values Plummet

Melbournian said:
the worst areas i would say is CBD - especially those pigeon hole apartments like 40-60sqm. they hardly sell.

Southbank is a no go zone - too many devs and many will overshadow what is already there.

.
Click to expand...

(a) Depends on purchase price
(b) Southbank: agree totally, I am getting offers left right and centre from agents that know I do business, but not interested unless its a steal, and I mean a steal (2 bedroom with car park, come to me if its around $400k otherwise don't disturb me)
(c) I missed a fantastic opportunity 5 years ago, to buy those pigeon holes in the CBD, they were going at fantastic prices, but I made the mistake of talking to my bank manager. Biggest mistake of my life. I could have picked up at yields greater than 12% gross.

There is good money to be made in cbd properties.

Rental demand is fantastic, and I mean fantastic.
But its such a cyclical boom and bust market.
 
Intrinsic_Value said:
I live hear, the Paris end holds much better, and the Paris end starts west of Elizabeth Street.

In fact I would narrow it down further.
Collins street to Lonsdale street, Swanston street to Spring Street.

That's the grid
Click to expand...

Interesting you say that. We've always land banked within this area while the developers have been building garbage outside. There are some developments that have fallen in value in this box though.
 
Intrinsic_Value said:
(a) Depends on purchase price
(b) Southbank: agree totally, I am getting offers left right and centre from agents that know I do business, but not interested unless its a steal, and I mean a steal (2 bedroom with car park, come to me if its around $400k otherwise don't disturb me)
(c) I missed a fantastic opportunity 5 years ago, to buy those pigeon holes in the CBD, they were going at fantastic prices, but I made the mistake of talking to my bank manager. Biggest mistake of my life. I could have picked up at yields greater than 12% gross.

There is good money to be made in cbd properties.

Rental demand is fantastic, and I mean fantastic.
But its such a cyclical boom and bust market.
Click to expand...

Southbank - highly doubt it would be 400K that would be going back to 2006 prices. Pigeon hole apartments - yeah i got a friend investor who owns 5 of them (good rentals) and hasn't been able to offload to fund other ventures.

I previously have owned more than 10 apartments in inner city CBD and i think i squeezed every possible manufactured gain out of them but more towers means more supply over the demand. i rather go with land now.
 
Intrinsic_Value said:
I live hear, the Paris end holds much better, and the Paris end starts west of Elizabeth Street.

In fact I would narrow it down further.
Collins street to Lonsdale street, Swanston street to Spring Street.

That's the grid
Click to expand...

about 10 years ago, there were some apartments literrally built next/above to RMIT bourke st campus for about $225-$250k, being a little more naive then I am now, I thoguht location location location,

do you know what happened with these ones?
 
Melbournian said:
yeah i got a friend investor who owns 5 of them (good rentals) and hasn't been able to offload to fund other ventures.
Click to expand...

Why's that? Just too much supply? I always knew the market was tough, but didn't imagine it'd be this tough considering it's a booming market everywhere else now.
 
TMNT said:
about 10 years ago, there were some apartments literrally built next/above to RMIT bourke st campus for about $225-$250k, being a little more naive then I am now, I thoguht location location location,

do you know what happened with these ones?
Click to expand...

You talking about unilodge? They struggle to sell.

We developed a building many years ago in around the early 90s. These apartments sold for around $120k. To think they'll sell for under $500k today, it's probably not a very good return for investors.
 
Deltaberry said:
You talking about unilodge? They struggle to sell.

We developed a building many years ago in around the early 90s. These apartments sold for around $120k. To think they'll sell for under $500k today, it's probably not a very good return for investors.
Click to expand...

yeah not sure whether it was unilodge but I only remember it as it was so central. pity its uni lodge
 
antistar said:
The thing about Melbourne cbd apartments is that there is a massive difference in demand and value from street to street and from building to building.
Any apartment north of bourke st and west of elizabeth street has limited chance of major growth. Even some of the older good quality buildings over there like Republica and Melbourne terrace have stagnated / dropped in value. The boutique developments in the east end are holding up well as well as anything on spring street.
The real value in Melbourne cbd apartments is within the unique properties / the conversions and one off rooftop properties. They are out there but rarer than hens teeth
Click to expand...

Agree in that there is a big difference between properties even so close to eachother. Look at southbank- some older run-of-the-mill apartments built by central equity compared to say a freshwater- no comparison at all and the prices reflect that. If you are buying a decade old apartment in inner Melbourne, really need to hold onto it for many years to come. Eventually, im talking 20 years, the location will deliver.
 
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