VIC Melbourne CBD apartments - what??!

No one says you can't capital growth in the CBD they say that the odds are against you because of the oversupply.

You can get 43sqm in a heritage building for under 380k 611/33-71 Spencer Street, Melbourne, Vic 3000 It's probably also 100 years old and they'd probably accept 350k - these sit on the market for ages before selling and they're not rare.

The issue with body corp is you can buy an apartment with low fees of 3500 that shoots up to 5000 when a lift breaks down. Very hard to find low-maintenance CBD apartments that are decent size & layout and priced well.

 

I'd like to know what building OP bought in so can see what characteristics it has which caused it to double in the CBD. Plenty of 100 year+ 50sqm apartments in the city for around 350k but not sure if they have good capital growth potential as demonstrated above.

 

Happy for you Jay! Yeah, market has moved up another level since the last time we spoken. Two bedders in some streets have broke $10,500 per sqm! And that's without a car park!! Although, there's one very important thing to note, is give the right agent to sell! I have seen some really worthy heritage apartments sold at less than what it should have, because the agents were not familiar with the cbd market.

The main reason why these calibers kept going the reverse in this down fall market: Low stock! There are very tight stocks in these buildings, so you won't have wild variations where owners fire selling, affecting the whole building price per sqm. The more they built all these similar shoe boxes, the more valuable and rare these will become.

But of cuz, need to be careful when selecting the stock. There are many "fake" heritage and "the real" heritage.

 

That's the correct approach

Most lenders will accept 45sqm apartments. It's the ones under 40sqm which would be a problem. The other potential risk here is whether the suburb is listed by lender as a high density risk areas in which they may impose a LVR restriction such as 70% LVR max no matter whether it's 200-units high rise complex or 10-units low rise.

Your broker will be able advise you on this - good luck!

Cheers,
David

 

Hi all,

Looking a 3:2:1 in South bank. Large storage cage, podium level with 90 sqm courtyard, 110 internal.
South East facing close to the new Melbourne square.

Body corp 6k a year in a 200 lot building.

What do you think price range should be. They asking 900k.

What's the current sqm rate I should be expecting?

 

Depending on the age of the building but generally around $5k - 7k/sqm for old building i'd say...? @melbournian would know more about southbank.

 

This is an interesting offer and really shows how desperate new apartment developers are getting. They must have really lost demand.
Caydon Black Friday | Caydon

The $100,000 discount will literally become worthless in 2019 if apartment prices drop 10% or so in inner city Melbourne. This seems pretty likely with the inner city housing market expected to do exactly that (a minimum 10% decline in 2019). The buyer will lose the value in the discount by next year. Except the buyer has now essentially bought a 1 year old apartment with no discount in 2019.