Melbourne off the plan re-sale warning: Herron Todd White

Property valuers Herron Todd White have warned the re-sale of metropolitian Melbourne off the plan properties might be challenging as overseas buyers account for a large portion of the market.

“Off the plan properties may be tempting with 10% deposits and reduced stamp duty, however a large portion of demand is coming from overseas.

“The majority of foreign investors are only able to purchase new off the plan properties, so when it comes to selling years later, your market pool has shrunk considerably.”

The valuers say the Melbourne apartment market is currently being watched very closely as evidence continues to emerge of an oversupply of apartments in the development pipeline, particularly in the metro area, with approximately 25,500 expected to be completed by the end of the next year.

Property Observer reported on Matthew Guy's approval of three new major skyscrapers in the Melbourne CBD, with the planning minister having almost a "manhattan-like-skyline vision."

Property consultants Charter Keck Cramer (CKC) anticipate a 30% rise in new apartments to be completed over the next three years taking total inner city apartment numbers from around 30,500 currently to over 42,000 by 2015.