Melbourne CBD high rise apartments to suffer largest price falls: HTW residential
High rise apartments in the Melbourne city and fringe areas will suffer the largest price fall as a result of the Coronavirus, according to the latest Herron Todd White (HTW) residential report.
The valuation firm presented an 'investor playbook' of real estate performance within each service area this month.
"The past few months have also impacted the rental market as high rates of unemployment have led to many young people exiting the rental market and moving back in with parents, downsizing or sharing rentals to save money," the valuation firm said.
This has greatly reduced housing demand, which has caused a spike in vacancy rates, leaving investors nervous about what’s to come.
With immigration coming to a halt as well as a sharp decline in international students, investors will be feeling the pain over the next 12 to 24 months, the report noted.
"We are also seeing quite a number of nomination sales in the CBD market, as many investors are desperate to find a new purchaser to take over
their property.
"Investors are doing this now as they had originally purchased these apartments 12 to 18 months ago and pre-committed to contracts, but with lending environments changing since then, they are unable to settle on their apartments, leaving some with no choice but to forfeit their deposits," the valuation firm said.
A new two bedroom apartment in Melbourne CBD was sold for $630,000 in July.
The apartment at 3102/135 A'Beckett Street (pictured below) comprises two bedrooms, two bathrooms and open living area.
It was last sold in 2014 for $635,000.
A two bedroom Melbourne CBD apartment with water views has been listed for rent with a price guide of $650 per week.
The 4907/605 Lonsdale Street apartment (pictured below) comes with open plan ring area, modern kitchen, large balcony and European laundry.
It is located opposite the South Cross Railway Station.
