Oversupply – Are We Comparing Apples With Apples?

MARKET INSIGHTS
02-Jun-2017

There is no doubt about it, there are a lot of apartments for sale right now in Melbourne and there are many more in planning or under construction. This volume of development activity lies at the heart of the current oversupply debate and has had many people wondering whether a city apartment is still a good investment. 

Melbourne city’s property market is complex and diverse. It cannot be summed up purely by the popular headlines being published in the mainstream media. While there may be a lot of apartment buildings in planning, not all buildings are actually being built. And likewise, while there are many apartments on the market not all are worth buying. But many are.

As a local real estate agent, I receive feedback on a daily basis from a wide range of people actively involved in the property market; buyers, vendors, neighbours, developers, financial advisors and valuers. I rely on this information along with actual sales results to provide advice to my clients.

A quality apartment is significantly different to a poor quality one and each will perform significantly differently as an investment. Melbourne is internationally recognized for its liveability, education system, hospitals and culture. Our population in booming and there are significant investments in infrastructure underway.

Good quality apartments in Melbourne CBD area always in demand. When looking for a quality property ensure that you think about these key factors; the right floor plan, the right building and the right location. Properties that deliver on these key factors are far more robust to market conditions as there will always be demand for quality apartments no matter what is going on in the world.

The right floorplan 

Some of the most popular floorplans we are seeing at the moment are two bedroom apartments with ensuites to each bedroom. They are great for buyers who are looking to lease their property as this floorplan can be rented to two couples at the same time which typically delivers excellent rental returns.

Larger two bedroom and three bedroom apartments are also very popular among families who are converting from suburban houses to apartment living. Young couples who are thinking of upgrading and starting a family but do not want to move away from their city lifestyle are also very attracted to these floorplans.


The right building 

A good building is a building that is not just externally and internally beautiful, it is also a building that is managed well with exceptional owners corporation companies in place, a good quality build that has been built with top notch materials by quality builders. The facilities for residents that are useable to the extent they can cancel any other memberships they have and SAVE money by living in that building, It aesthetically pleasing to the eye externally and internally in all communal areas and the apartment itself… It is also a building that is recognised for its good quality floorplans, professional staff and has an all-round good reputation.


The right location 

Location is the bedrock of any successful real estate investment. A great location is surrounded by lifestyle amenities, services and infrastructure. Buying real estate in a great location provides owner occupiers and tenants with a high-quality lifestyle and investors with high demand, safeguarding their investment in respect to vacancy, rental returns and speed of resale.

 

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WRITTEN BY
Aisha Coe

Aisha Coe

Senior Sales Executive
11 Power Street
Southbank VIC 3006

P: +61 3 9696 8869
M: +61 439 888 837

 

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