Apartment Effect on Local Housing

Discussion in 'Property Market Economics' started by albanga, 25th Jan, 2020.

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  1. albanga

    albanga Well-Known Member

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    What’s people’s thoughts on apartment constructions effect on local housing.

    I live approximately 900m from a busy rd which has a tram and a great restaurant and cafe culture.

    Over the past 3 years a lot of new apartments have been constructed and a lot more are underway with a lot of old car dealerships now gone leaving huge blocks for developers.

    The things I am noticing are:
    Pros:
    - More business has come about located on the ground floors of the buildings
    - More activity with a lot of the restaurants buzzing

    Cons:
    - A lot more traffic and only getting worse

    Thinking logically I see it as a benefit.
    I imagine with time that people will naturally want to move into bigger properties but stay locally, especially those with young families.

    Curious what others think?
     
  2. paulF

    paulF Well-Known Member

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    Seen that happen around Brunswick/Coburg when i was living around the area a few years ago.

    Spot on with advantages/disadvantages but yeah, i would think that traffic and congestion will only get worse. I chose to move further out, around 10 minutes further North a while back.
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    That's life in a big city. In the next 10-20 years we'll see greater densification not less, the realisation that you can have it all in an apartment without the maintenance issues & the prices of newer, high quality, larger units will outstrip the price of small free standers with limited potential (unless you can amalgamate several sites and achieve a rezoning).
     
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  4. Archaon

    Archaon Well-Known Member

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    I think access to public transport would be the biggest factor, as you said, traffic is terrible, but if you can walk to everything then that isn't all that much of a concern.
     
  5. albanga

    albanga Well-Known Member

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    Councils have a huge responsibility to plan for the increase in traffic. I think most just have eyes lit up with all the new rates $$$$.

    I definitely believe our council is asleep at the wheel on this one. As an example 5 years ago you could get to the train station at 7.45 and still get a park and seat.
    Today your not parking after 7 and zero chance of a seat.

    Weekends entering the main rd is a traffic jam.
     
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  6. Archaon

    Archaon Well-Known Member

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    The same thing has happened in Thornton, NSW.

    like 5 new Sub-divisions all have to go over 1 rail bridge in Thornton proper.

    It's a nightmare.
     
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  7. Stoffo

    Stoffo Well-Known Member

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    They don't & won't though :(
    When 3-4 old places paying $1,600ea in rates get turned into 45 appartments paying $1,200ea in rates it's all "KA CHING" lets build a new town hall and have a pay rise :confused:
    No additional parks, with roads taking many years to upgrade o_O

    Many apartments built locally may improve your land value provided the right zoning applies;)
    Ours doesn't, couldn't rent it out for what it's really worth due to cheaper apartments :(
    Traffic on weekends is now worse than a weekday:eek:
     
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  8. Melbourne_guy

    Melbourne_guy Well-Known Member

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    Strata management fees for many apartment blocks are eye watering - and that doesn't include the additional costs incurred for repairs. Poor quality Australian workmanship and a lack of responsibility for building defects are other reasons for avoidance. The potential is there but the current situation is a shambles hence State and Federal Govt need to up their game and amend laws to ease peoples concerns.
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

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    The solution is to outlaw the accountants & lawyers. They dictate to the project managers where costs should be cut with the least ramifications on the builder. Where the cost of construction can be optimised and the ongoing cost be passed onto the owners is a mystical point.
     
  10. Kangabanga

    Kangabanga Well-Known Member

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    Councils are all the same, office of cushy jobs. But thats what u get when development occurs. Time to plan for a seachange.
     
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  11. albanga

    albanga Well-Known Member

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    That or a river change is definitely on the long term cards. Let’s just hope all these apartments jack up my land price
     
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  12. Scott No Mates

    Scott No Mates Well-Known Member

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    Gold Coast canals?
     
  13. albanga

    albanga Well-Known Member

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    Nah Murray River down Echuca way.
     
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  14. Archaon

    Archaon Well-Known Member

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    Have plans to visit Echuca very soon
     
  15. Scott No Mates

    Scott No Mates Well-Known Member

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    Nice part of the world. I'll get back there One day.
     
  16. theperthurbanist

    theperthurbanist Well-Known Member

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    To my mind there are pros and cons as you mention, however the impact on CG and rent for existing dwellings depends on who your target market is and whether you are competing with the new apartment product. If you have an old small villa or granny flat, you are probably going to be negatively effected as many (but not all) renters/purchasers will prefer a shiny new apartment. If you have a spacious house with a big backyard you are unlikely to be competing with the same people looking at apartments and/or on balance your property will offer significant benefits that apartments never can, presumably with limited additional supply coming on - so I would assume houses would perform well.

    In terms of the pros and cons of development: additional activity/vibrancy trumps traffic any day of the week. Think of all the places with high activity and high traffic in your city vs those outer suburbs with no traffic and no activity. 9/10 property values will be higher in the high traffic areas.