I found that many inner city apartments haven't grown much since 2008 as well. One i saw in box hill which was sold at $470k in 2009 and now for sale at $430k (auction). That's same depressing as in ADL lol. Anyone follows apartment market in Melb?
Supply has killed cg last 4-5 yrs, and will continue to kill any cg in the next 4-5 yrs... However, in 25-30 yrs hold period, you would be laughing..
I noticed the same when i was looking at apartments in thornbury. 1 beds havent reached the peak of 2009. 2 beds have grown though. Im not sure how accurate the data is though. Its from realestate.com
Its kinda crazy varying these days. I did find three bedders have gone up 10-20%. Two years ago I could find three bedders in CBD for $600k+ but now all become $750K - $850K. But two and one bedder are still stagnant...
Houses definitely outshining apartments in terms of capital growth in Melbourne, even in high demand 'lifestyle' suburbs. I think unless you're planning on an AirBNB rental (friends doing this in city and st kilda) and can generate a really high yield, there are better investments elsewhere.
I am wondering how Sydney's done it. I mean Syd didn't suddenly turn 5 million population overnight. So did they add in that kind of massive supply in the 90s and went through a supply glut as Melb currently is? If you look at prices in Syd, a two bedder apartments/ units is like 700k... which is almost 70% more than in Melb.
Apartment prices in Melbourne have slowed significantly - I purchased in 2012 and they were on the rise but it stopped at around 2014 and has remained level since then with minor gains. I am speaking from the inner city standpoint
@ATANG i have some experience as i have purchased and sold more than 10 in inner city apartments like southbank, south melb, carlton, cbd over last 13 years. i own only 1 now. 1. there is no CG for OTP or newer apartments (super glut in these areas) 2. Unless you are solely purchasing for lifestyle it is best not to purchase an apartment in inner city. 3. there is some value in purchasing for airbnb purposes but that could change with the owners corporation veto against short term leases (so have to cautious) 4. there is a market for luxury apartments (which are large in sizes - freshwater place, melbournian and the recent tallest building Australia 108 - sold 25 million penthouse) all sell in mililons. 5. If you are looking for any possible gains then you are going to have to purchase larger than normal apartments and renovate (sweat equity) and also pick good finishes. places where i know these exist - Spring Street CBD, Wells St and Dodd St off st kilda road - which can be 130-160sqm (160sqm is like small house in pt cook). Again any gain is not guaranteed. 6. if you look at the last few "block series" in melbourne - these are inner apartment city places park st in south melbourne, dorcas st in south melbourne and the 2 south yarra sites. these have been in the millions and some even re-sold for more.
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