Why do people hate/dislike Docklands ??

[Angel]

ive only checked out a few apartments in winter, and it was too cold to notice the wind on balconies, is it windy all year around and all day and night???

I am currently driving all over Victoria looking at all the places mentioned in IP articles. On Saturday afternoon I was just about blown off the wharf at Docklands. Hated the place. Got onto the next tram back into town.

Not that I would remotely consider it as an investment, just wanted to see what all the fuss was about.

 

[Aaron_C]

While you're here, check out the good areas like Richmond, Carlton and Fitzroy.

 

[Angel]

Yes, I liked Carlton.

 

[Property Tycoon]

Too many investors

If you look at ABS stats it shows you that more than 3/4 of the people who live in the docklands are tenants - meaning the properties are owned by investors.

In the property market capital growth is driven largely by home buyers - investor will make purely financial decisions (or should). homebuyers on the other hand make emotional decisions.

With a lack of home buyer demand capital growth will be weak. (Same for student accom, defence force housing and serviced apartments which are 100% investor owned) Further there is already a lot of property in the docklands but here is the kicker - it is only about 50% complete. There is a lot more sites yet to be developed. This means once the current supply is soaked up more portents will be built. It may well take a generation or 2 for this cycle to be completed.

To add to the mix a very low land to asset ratio the economic indicators just do not stack up for investors. (unless you are the developer)

 

[Melbournian]

agree with all the above

however low land to asset ratio - if you gonna buy in the CBD or areas like that, it doesn't really apply - you gotto compare apples with apples. land in berwick as oppose to apartment in the CBD are 2 different types of assets and have different appeal, risk factor, yields and return. You can make a return even larger than what you hope to achieve in outer suburbs but it would be reliant on very microeconomic factors and inner city knowledge.