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NSW Sydney CBD - oversupply?

Discussion in 'Where to Buy' started by slumdogmillionaire, 23rd Mar, 2016.

  1. slumdogmillionaire

    slumdogmillionaire Member

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    With all the recent articles in the news about oversupply etc. and huge developments in the Sydney CBD, what are your thoughts re: oversupply?

    Will the Sydney CBD hold its value despite the HUGE amounts of developments?
     
  2. JDP1

    JDP1 Well-Known Member

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    No because :
    1. Sydney is past its peak and is in the early stages of a cyclical down turn, and
    2. I forgot what this was...but ita an important point...will post when i remember it.
    The falls wont be large though...steong fundamentals and good pop growth should limit falls. Will more likely have a long flat period though. Wont go anywhere for years.
     
  3. Tekoz

    Tekoz Well-Known Member

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    @slumdogmillionaire if you read this Apartment lender 'blacklists' 140 suburbs you'll see that Sydney NSW 2000 is also listed there.

    [​IMG]

    But from what I can see and my experince, more people will still choose to live in Sydney.

    Have you heard or even experience the apartment overcrowding in Sydney CBD ?
    Most of the apartment is rented for double or even triple the legal capacity, so no matter how expensive the rent is, people will always find a way to share the renting cost.

    No overcrowding rule, no problem. Some apartment is rent or leased by people to run exclusive ad-based brothel like in Central Park, Maestri Tower, Lumiere and many other apartments.

    In NSW, charging for sexual services is legal. Under the City of Sydney Local Environmental Plan (2012), a maximum of two permanent residents can offer sex services, which is considered a legal home occupation.

    Source:

    High-rise happy endings: Illegal prostitution at Central Park

    Madam Wu, where are you? Illegal Sydney pop-up brothel shuts after neighbours turn nasty
     
    Last edited: 24th Mar, 2016
  4. jins13

    jins13 Well-Known Member

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    Strata fees in the city was one of the many reasons for me to consider other areas. Besides, I am not a fan of units anyway.
     
  5. New Town

    New Town Well-Known Member

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    No way! Not in the CBD, maybe spots in say Zetland but will be absorbed quickly even there.
     
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  6. Simon L

    Simon L Investment Property Buyers Agent Business Member

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    If lockout laws remain, I expect areas like Potts Point/Darlinghurst to gentrify and become very premium city fringe areas.
     
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  7. New Town

    New Town Well-Known Member

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    Oversupply is a term Sydney nimbies use every time new units are proposed.

    Or Urban Sprawl when its some new houses.
     
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  8. bumskins

    bumskins Well-Known Member

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    I don't think oversupply is likely to be an issue in the Sydney CBD. Sure some people who were paying frothy prices might not see much growth, but you are talking about a small base.
     
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  9. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    I notice prices in my area of Darlinghurst/ Surry Hills have dropped price from this time last year .
     
  10. Scott No Mates

    Scott No Mates Well-Known Member

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    Prices for resales of newly used unis will generallybe lower than sales of new units but that's attributable to the loss of the 'shiny' factor ie development profit has been taken and works are required to bring it back to as new condition.

    There's your market bargain hunters.
     
  11. jins13

    jins13 Well-Known Member

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    My biggest biff about any apartments in the city is the enormous strata fees attached. Feels like another loan on top of a loan.