Southbank/Harbour Precincts

From: Kevin Frey


Hello,

I am new to property investment and considering "jumping in". I don't know whether the time is right or not and on the one hand I feel the marketing is peaking out and on the other hand I don't want to wait around for 5 years and then think "gee, I wish I had ...".

So, my question relates to the high-rise accommodation being built at Southbank on the harbour.

Several people have said to me avoid locations that can just go "up and up and up" (height-wise) because it's easy to end-up with oversupply. Southbank will obviously be a lifestyle area.

I'm comparing it to Port Melbourne which, from which I was reading, had units selling for $250K perhaps 3 years ago that are now worth 2-3 times that.

There are so many questions I'd like to ask, I guess I'll just start with that.

Thanks

Kevin.
 
Last edited by a moderator:
Reply: 1
From: Brian Haynes


there has been a number of articles in the local papers about these hi
rises in the Docklands and Southbank regions.
The general consensus is that the is an over saturation of these type of
dwellings, no capital growth, and built to a cost . Also most are investor
owned and many are having trouble renting at a reasonable figure.

With the vast number to come on in the next 12 months it is only going
to get worse
 
Last edited by a moderator:
Reply: 1.1
From: Kevin Frey


I guess my head is telling me exactly that, but my heart is saying that once the lifestyle aspect of Docklands kicks in, things might turn around. Most people love living near water for some reason.

I was walking around Port Melbourne the other weekend (the weekend the Spirit of Tasmania was open for inspection) and really like the vibe of Port Melbourne and given property prices there are sky-rocketing I wonder if the same would happen in Docklands once it establishes.

I was therefore wondering if now was good opportunity to get in on the ground floor, as an investment.

Would Port Melbourne be considered a better proposition - at least they probably have restrictions on how high the towers can be built.

When you say people have difficulty getting reasonable rental returns can you give an example (eg. %-wise)?

Thanks

Kevin.
 
Last edited by a moderator:
Reply: 1.1.1
From: See Change


Kevin , there are areas that I think will make good long term investments , eg Pyrmont in sydney , but due to over supply and the state of the market , I don't think now is the time to buy there. I'll watch to see what happens and maybe later I will . Docklands maybe in the same situation. Australia doesn't have the track record of people living in close proximity to each other and the city that many other countries have , however ( IMHO ) this is likely to change.

We know some people who have smaller town houses / houses in good positions and a place 1-2 hours outside the city where they go for weekends.

see change

it's better to be guided by your dreams than your fears
 
Last edited by a moderator:
Top