Since Tubs have pointed out all the bad things about Docklands,
just thought I'd point out some things :
Every year, more and more people migrate to Melbourne. People are attracted to the quality of life here, stable goverment setup and better education system. Since the city is getting really densed now, people are bound to move out to suburbs close to the city such as St Kilda, Carlton and of course Docklands. (which has caused so much controversy thus far!)
Yes, I agree with Y-man when he said that its for the more well-off people. Of course, who would pay $550 p/w for a 2 bedroom if they're just earning $40k p.a ? So, having said that, its also the lifestyle factor that is so appealing to others. Especially if it has water views / phillip bay views/ city views. Therefore, when purchasing an apartment there, it wouldnt be such a wise idea to buy OTP units as you know really know what you're getting. ie whether you're going to be built out by anohter buildings, fittings & walls etc.
If its an established property with excellent views, say the Mirvac Developments, Dock 5, of even SOME on the New Quay area, it should be a good investment.
Why do I say this ? This brings us back to the scarcity factor. Yes, there are hundreds of apartment units going up in Docklands at the moment - namely Lacrosse and others. However, do you know that there are heaps of commercial buildings that are being developed there too ? The most well known one would be the ANZ building, but there are also buildings like Myer, The Gauge, Bendigo. Buildings like this are going to create thousands of jobs. And when there are so many jobs there, many ppl will tend to move nearer to the city. When that happens, Docklands will be more desirable then it currently is. Docklands will not realise its potential now but in a few years time, trust me, many will eat their words. By then, when you wanna get into the market, it'll be even more overpriced compared to now. The new Mirvac developments which will be up in 2010..starts from 850k for a 2bedroom. And they will be building another 5 on Yarra's Edge.
Also, I totally disagree with Normailson's comment about Docklands not having any amenities. It may be (quoting Normailson) "sterila and soul-less" a few years back, but have you seen Docklands now ?
They've got a couple of IGAs, load of restaurants(mainly posh ones) but there are many average ones up already too. Tramlines are all well in store.. A shopping centre at the waterfrontcity will also be ready by the end of this year. Docklands is just 1km from the CBD and southerncross station is just 5 minutes away. What more can you ask for ?
Having said the above, I do feel that not ALL apartments in Docklands are good for money. The ones with blocked out views/no views are really not worth buying. For Docklands, the main thing is the view factor. (water) If you're planning to buy an apartment in which you have to stick your head out too have a glimpse of the water/marina, then its no good. If one were to get an investment there, water views/city views + reknowned developer(therefore good fittings) is a definite must. An apartment done by a crappy developer with no views except the next door building / the highway will be a big nono.
All in all, Docklands is great area for the future but its too expensive and overpriced for most. Its impossible to convince everyone to see it your way..