There has been relentless media coverage about oversupply in the last few months. While there is little doubt that a number of apartments are being built in inner Melbourne, and research suggests that there is potential for a market correction, no one is presenting the other side of this very complex topic.
Quality apartments are in short supply
Despite the number of apartments in inner Melbourne increasing the supply of quality of apartments is not rising at the same rate. Those who own well designed, well-constructed and liveable apartments, in buildings with great amenity and convenient locations are seeing excellent results as demand for this type of apartment remains at a premium.
Over the last six months in Zen, a CBD tower built in 2011, the properties we have sold have achieved on average 10.15% growth on the off-the-plan purchase price in just 6 years1. This is significantly higher than the average CBD apartment growth of 1.4% annually over the last 5 years2.
With demand for liveable, quality apartments potentially increasing, there are benefits for those buyers who purchase now. The impact of increased development is unlikely to negatively affect the prices of quality apartments and may in fact act as a catalyst to drive price growth in quality real estate.
Enquire below and speak to a member of our team to get an understanding of the attributes that define a quality apartment and inspect the range we currently have for sale.
1-Data retrieved from off-the-plan sales contracts, May 3rd, 2016.
2-Data retrieved from RP Data, April 25th, 2016.
