VIC Docklands

I was talking to an acquaintance and they told me they had purchased an OTP apartment early last year that is due to settle at the end of the year in Docklands. Does anyone has any info on this area, it seems a bit crowded with apartments from what I’ve seen.

Any chance it has gone up in the last 18 months as Melbourne has moved quite a bit in this time?

How are they likely to go with Vals and finance?

Any advice as to what to do with this situation?

Cheers,

Smallbuyer

 

I was talking to an acquaintance and they told me they had purchased an OTP apartment early last year that is due to settle at the end of the year in Docklands. Does anyone has any info on this area, it seems a bit crowded with apartments from what I’ve seen.

Any chance it has gone up in the last 18 months as Melbourne has moved quite a bit in this time?

How are they likely to go with Vals and finance? I have heard something about lower lvr's in some areas?

Any advice as to what to do with this situation?

Cheers,

Smallbuyer

 

Lots of apartments & lots more coming. Look at the cranes to give an idea & also Lorimer St Port Melbourne as rezoned residential. Hence offices moving out. Can't help on vals query though.

 

Apartments have not grown in past 5 years, let alone 18 months.

The only advice to them is "all the best".

Check in melbourne outskirts. People have achieved 20% or more in small buys ranging from 300k to 380k.

Regards

 

Docklands is mentioned often when talking about over supply and I have had issues with valuation previously. In general I would say avoid.

 

Huge oversupply of apartments in the Docklands. Expect difficulty with leasing it out or selling it.

 

If they have purchsed for OO then may be OK as it is likely they work in the city and the 0% growth they will experience on the next 10 years will be offset by a 10minute commute each day.

If they purchsed for an investment then IMO they have rocks in their head and probably purchsed in what I would say is the worst investment in Australia outside a one trick mining town.

 

Nice quite place to live next to the city

 

Sell sell sell... I have seen apartments which are listed 20 percent below the purchased price. Too much supply is in pipeline and glut would be at worst in 2018.

 

But..... With the exception of Sydney and Mel...the whole of Australia is a one trick mining town

 

Docklands is the butt of many a joke in terms of dud investments - huge oversupply issues which have been around for years and will for years to come. Avoid like the plague.

Always remember why you're investing - capital appreciation/rental return. If there's a continuing increase in supply coming online, that's competition which can put downward pressure on prices and keep rents low.

 

I have done some loan for clients for off the plan settlement in Docklands this year.
Every loan I did. None of the valuation come near the purchase price.
$100k lower than the purchase price is not uncommon.
I felt the pain for them.
Many lenders have post code restriction lending policy against Docklands, such as NAB, AMP...etc.

If can, please avoid.

 

Also the Docklands is a horrid wind tunnel. Nothing pleasant about stepping outside.

 

Docklands is a very special market...either you love it or you hate it. I have a lot of friends who live there and they can't leave there, they love the water, the close accessibility to the city, the quietness; then i have another group of friends who hate it, and blame of chinese money coming in to support those stocks, and they probably been there once a year....

Personally i would only be interested if there's something special coming up, for example a luxury spacious apartment with harbour view, on top floor with a big discount from previous contract price. There's still this luxury market potential in the suburb (if you get in at the right price) because chinese loves water.

 

The truth about life in a Docklands apartment tower

interestingb article

althgouh ive never lived in docklands, ive been there every now and again,

id hate to live in one of those shoebox apartmens with a conrete wall in front of it,

however some of the penthouses or big apartmentes with balcony and view are spectacular,

id live there in a heart beat if I got a screaming bargain

 

Anyone heard anything new about Docklands lately? Any improvements or is it still all negative. I imagine buyers would not be happy if they sign up for these a few years ago as the whole market seems to have moved up in Melbourne a lot while these have gone nowhere.

 

i don't own in docklands but honestly speaking i walk to docklands occasionally and from previous work place was opposite ethitad stadium (all the myths about being a bad place is actually not exactly true, they have spectacular views from the river, walking down and the place is much better than some inner city suburbs in terms of grounds, they even have a dog park which i go to from south melbourne. Docklands was planned to be like darling habour (so a lot of things are very new though it has not taken up)

From a CG perspective - it has been a failure. but rental (i know people making decent coin from short term leasing off siddeley street, a short 5 min walk you in CBD, cross the bridge you are already in a south wharf shopping centre. and another 5 min walk you are in crown casino. The south melbourne market is not far away and so is the use of amenities around the area.

The comparision with a mining town is not acurate - there are still suprisingly million dollas sales of apartments and townhouses. Some of these townhouses are like 10 meters away from the river and not many places have these views or facilities right at the door step.

 

Was there other week for Saturday lunch. Just about everything on the main walk for lunch was closed except the $22 burger shop and fish and chip shop. Anything else open had a couple inside if you're lucky. Felt dead then, I guess the traders rely on the crowd spill overs at night and from stadium events to make their money. Many locals in the apartments aren't eating in the main waterfront all the time either.

Granted you could never buy apartments with views and so close to city in Sydney anywhere near the price range you can buy in the docklands. You can see how Sydney people could land there for example and perceive anything is a bargain their comparative to Sydney on the water.

If you work in town, you could survive quite happily in Docklands without a car.

 

A one trick mining town probably has more upside atm