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June 29, 2004 - 6:17 pm

here are some examples, half that development is for sale, maybe the ones actually sold are close to fully leased,

http://www.realestateview.com.au/cgi-bin/results.pl?GID=100&s=27178250&p=1&BS=10&Thu=on&Qui=&tp=&rev=&Order=listed&Con=S&critflag=&alphalnk=1&alphacol=aaaaaa&Bkmk=_&OFI=

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June 29, 2004 - 6:09 pm

are you sure about flinders wharf?, I read an article in the paper some time ago reporting that agents Butler and co were trying to see around 70 apartments in that block and had only managed to sell 2 over a period of several months, I had assumed these couldn’t be sold before completion sounded like it was the developer trying to sell them.

Originally posted by jparrie:

Originally posted by kay henry:

Huge apartment blocks with hundreds of units in each of them, no points of differentiation…

kay henry

I agree, this is the major problem at the moment in the Docklands area. However, not all developments are suffering this problem at the moment. For example,the Flinder’s Wharf development is just about fully leased, 5 months after completion.

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June 28, 2004 - 6:42 pm

I’m not sure the slum comments will hold true, as a comparison to the CBD southbank is much quieter and has a fairly upmarket feel especially along the yarra, I have rented here for 2 years and you get some noise which is mainly related to people coming from the casino plus some lots of younger people from nearby clubs but overall it is not particularly bad.

Worth noting that a lot of very high quality stock will be on the market also in the next couple of years with freshwater place/eureka being finished. Read in the paper recently about one person buying a whole floor apartment for $10 million in freshwater place.

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May 31, 2004 - 4:30 am

Agree with Nat, I don’t think it is particularly concerning that someone should have negative equity in their property, apart from the risk to lenders if the defaulted.

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May 29, 2004 - 4:41 pm

I think if someone cannot save, regardless of the type of investment used, they will never be rich, in fact they will likely never be worth more than their next pay packet.

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May 29, 2004 - 4:28 pm

note companies do not get the 50% discount on cgt.

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May 28, 2004 - 7:48 am

is this off the plan stuff or perhaps something a developer is selling? if so make sure you look at a large amount of aftermarket sales before commiting yourself, often off the plan stuff is badly overpriced.

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May 27, 2004 - 5:19 pm

Originally posted by gmh454:

Originally posted by kaloni:

just to show you how bad the
docklands in melbourne are at the moment
a unit auctioned saturday was bought off the plans
2001 for about 955k was sold for 715k

Sounds bad but if they are an o/s buyer, when you take currency shifts into account, they may have broken even. Won’t help stabilse prices though.

that one was a local buyer, he was occupying it when it sold. From what I can see of it 20-25% losses are fairly common in southbank and docklands for those who bought of the plan in the last few years. I wouldn’t go as far as to say the market has fallen in those areas though, I think it more a case of people paying way above the market off the plan.

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May 10, 2004 - 3:15 pm

Originally posted by kay henry:
Boom Crash Opera folks [cap]

“Anything under 40 per cent and things are looking pretty scary,” said Louis Christopher, research director at Australian Property Monitors.

_____________________

Well, there’s something I was looking for. According to the article, 40% means a crash!

Here’s a crash face: [weird]

kay henry

strange, I wonder how auctions clearance rates would indicate a crash?, surely looking at selling prices would be the only way to measure price falls?

• This reply was modified 10 years, 1 month ago by  paul_s.
• This reply was modified 8 years, 11 months ago by  Jinghong Chiu.

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May 8, 2004 - 7:18 am

I’m not sure about the market “crashing soon”, this isn’t like the stock exchange where you wake up one morning and values have fallen 30%. The price declines looks to have well and truly started in many areas, though personally I don’t think there will be particularly large overall falls.

Out of interest on the stockmarket a “crash” is considered a fall of 20% or more and a correction is a fall of 10-20%.

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May 3, 2004 - 12:43 pm

Nothing wrong with a buyer offering 20% less than the true value, is the sellers agree they should be congratulated for their sharp business skills.

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May 3, 2004 - 12:23 pm

acey’s comments are bang on the money, its takes sacrifice to build wealth, the toys are sucking your finances down the drain by the sounds of it.

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May 3, 2004 - 12:12 pm

I think if you sell at the moment you’d be taking a fair loss, 426k sounds pretty high for an apartment that size. The docklands seems to be an ugly place at the moment for many who have bought off the plan.

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April 29, 2004 - 11:41 am

Originally posted by gmh454:

A one bedder bought in 2002 for 425,000 top bidded at $360,000 now on the market for $399,000
and a “beutiful 2 Bedder” bought for $825,000 that did not attract a bid, now on the market for $690,000. Both originally bought by a NZer.

I’m hearing similars thing in Melbourne also for inner city apartments, one I heard of was was bought for $380k off the plan about 5 years ago, sold $320k about a month ago. Then again lots of the new stuff being built seems to be just as overpriced compared to what apartements are getting on the open market.

I tend to think a fair bit of it is from people who may not know the market and get roped in by fancy marketing, like the example above of the New Zealanders

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April 29, 2004 - 5:36 am

If you try to climb too many rungs at once you are probably going to fall down.

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April 29, 2004 - 5:19 am

Have you though about what you could do on the net? Lots of students get invloved in this area as they often have alot of skills in that area and start up costs can be very low.

In terms of business generally my suggestion would be think about what your hobbies/interests are are and consider something related to them.

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April 29, 2004 - 5:09 am

what kind of asking price are you looking to buy at, in terms of cashflow a mortgage on a ppor is likely to suck out and awful lot more cash than renting.

Have you considered renting and buying an ip?

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April 26, 2004 - 3:11 pm

Just a few thoughts,

Freshwater Place and Eureka towers really aren’t in the same league as the central Equity buildings going up, the quality is much higher and the location better ie on the river where the views can’t be built out for many apartments. Eureka in particular is likely to be a very exclusive building with the top penthouses going for $8 million plus. The quality of apartments at the docklands is also considerably higher than central equity southbank places.

Central Equity seem more and more willing to put up towers very close to each other (5 together in the latest lot) there is also a large amount of vacant land behind those 5 currently used for parking, i.e. expect the views of the south facing apartments to be built out in 5-10 years.

Regarding prices I’ve heard of many examples of people experiencing capital losses in Southbank, an agent told me of a 2br apartment they sold last month, owner bought it off the plan 4 years ago @380k, sold last month for 320k. The better perfoming buildings tend to be the ones not developed by central equity. From what I can see the problem is simply overpricing, thats why they do so much marketing towards people who aren’t familar with the market here.

Don’t believe the claim about “they are very easy to let” vacancy rates of 1-2mths is pretty much standard around southbank, I’ve heard of brand new places being on the market for 6 mths or more before being let (since a big stream of apartments become available at the same time).