Sydney CBD apartment?

[Totaro]

Hi there, I know there are old saying about CBD apartment is high risk, but just wondering whether it's still the case now and whether CBD apartment in Sydney represent investment value. I saw people say they choose apartment within 15km of CBD, but why not within CBD itself?
From my understanding, at least two factors work against CBD apartment 1) price are high 2) strata are high.
However in today's market, with new apartment in most suburbs are high in price and strata, are these two still the limiting factor? I mean at least for CBD apartment the rent should be enough to cover interest right?

 

[MightyWill]

Mmm, there is CBD and there is Town hall/Haymarket side. When people say they live in the city, it's mostly in the Town Hall/Haymarket side or even where Pitt St mall is.

CBD is not very desirable place to live if you're talking places like Martin Place, Wynyard and even circular Quay; I take it this is what you mean by CBD. More the business men type stay in this area for work and I imagine half of them are international business workers where their company pays the rent for however long they are staying for.

The CG and demand is Haymarket and Town hall is very high; mainly Chinese buyers but also others as well. Once listed, they go under contract within 2 weeks. A 1 bed in this area was going for 540 - 560 18 months ago. Now they are 699 plus.

I wanted to buy around the town hall areas (Pitt/Sussex st) over a year or two ago. The price is now out of my budget of affordability. Plus the rent you get is very good. At least 800 for an average 2 bed if in good nick.

 

[vaughan]

Hi there, I know there are old saying about CBD apartment is high risk, but just wondering whether it's still the case now and whether CBD apartment in Sydney represent investment value...

Usually the "risk" is when buying them OTP (off the plan).

 

[Bentley]

For those who are against OTP.... well, there are many rich foreigners out there who are more than willing to pick up the slack.


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