Australian CBD Radius

Discussion in 'What to buy' started by cdg9, 14th Mar, 2022.

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  1. cdg9

    cdg9 Well-Known Member

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    Hi All

    Do you think as a general rule of thumb, most residential apartment IP's are going to be a safe bet, as long as they are within a 2-5km radius of the CBD?

    Based against capital growth, yield, ease of acquiring tenants and other general factors
     
  2. Shogun

    Shogun Well-Known Member

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    No
     
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  3. HonestShiba

    HonestShiba Well-Known Member

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    Where do you get that impression from? There's an endless supply of apartments in the CBD
     
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  4. Citycat88

    Citycat88 Well-Known Member

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    Look at Docklands in Melbourne. It has generally been a money sink with perpetual over supply. Limited to no capital growth for the last 15 or so years.
     
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  5. The Y-man

    The Y-man Moderator Staff Member

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    Proximity to CBD is not the major factor.

    Uniqueness factors (compared to other apartments) will feed the CG.
    For example:
    • views that cannot be obstructed in the future of water (absolute beach/lake/river frontage)
    • north facing component
    • big - 3bedroom + 2 car garage + balcony at a minimum
    The Y-man
     
  6. Scott No Mates

    Scott No Mates Well-Known Member

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    That's probably the least likely area unless the property will be rezoned for a much higher density & you will be bought out.
     
  7. willair

    willair Well-Known Member Premium Member

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    I would say no,some of those apartment blocks are the same price as they were 10 years ago in that radius in Brisbane..
     
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  8. Jaacksn

    Jaacksn Well-Known Member

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  9. applesathome

    applesathome Well-Known Member

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    Not a safe bet at all.
    CBD is changing, the hybrid working model is being adopted more and more, there is less of a premium on being close to the CBD as people who only did so for work don't need to as much.

    Not only that, they will always have another high rise on the go that can mean hundreds of new dwellings of exactly the same type go up in one hit.

    A CBD based apartment would not be a property type I'd look into. If anything for an apartment I'd look a few suburbs out in a premium amenity or lifestyle area like South Yarra for example, and try and get a bigger 1970s apartment in a smaller complex of say half a dozen or less, or something beachside.
     
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  10. igor1234

    igor1234 Well-Known Member

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    the only parameter is how many around u. docklands was perfect example. Some pockets in some cities are ok. (we had a unit in Redfern that did extremely well).
     
  11. Whitecat

    Whitecat Well-Known Member

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    Lol beat me to it
     
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  12. Whitecat

    Whitecat Well-Known Member

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    Huge scope in Brisbane for so many more to be built within close proximity to the CBD. Milton is hardly even got started and that's all low rise commercial zone 4 residential that's going to be incredibly dense and incredibly tall.
     
  13. Whitecat

    Whitecat Well-Known Member

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    Sydney is a little bit different for example take Elizabeth Bay or rushcutters Bay they're not going to build anymore apartments there they just simply cannot. So in some ways and some locations apartments can kind of behave like houses because no one could ever afford a house in that location and they cannot build anymore apartments.

    However contrast that with Zetland or something and it's a different story or Macquarie park.