What a lazy $700,000 can buy in Melbourne CBD: HTW residential
With current market conditions and in light of the recent events of COVID-19, a lazy $700,000 can go a long way in areas of Melbourne’s CBD and city fringe suburbs, according to the latest Herron Todd White (HTW) residential report.
The valuation firm took a look at how a budget of $700,000 could be invested in property markets across the nation.
Recent figures show that the median unit price for the CBD, Southbank and Docklands were $480,000, $575,000 and $609,000 respectively. It is truly a buyer’s and renter’s market for those looking in these areas, the report noted.
A north facing corner apartment in Melbourne CBD with bay views has recently been sold for $620,000.
The two bedroom, two bathroom home is situated at 3017/220 Spencer Street (pictured below mel ).
It features floor-to-ceiling windows, quality carpet throughout and large balcony.
A new listing is a two bedroom South Bank apartment priced between $540,000 to $570,000.
The 204/173 City Road apartment (pictured below) comes with living and dining area, black granite kitchen, and balcony with water views.
It is set in a corner position on the 20th floor of the Melbourne Tower complex.
"The global pandemic has definitely shaken up the rental market in the CBD and fringe suburbs," the valuation firm said.
Many tenants are international students unable to fly back into Australia due to travel restrictions, resulting in a spike in vacancy rates. This has left landlords nervous as this may cause a strain on their mortgage repayment ability for the property.
"We are also seeing quite a number of nomination sales in the CBD market," the valuation firm said.
A nomination/nominee sale is when someone who has purchased a property can transfer to another purchaser or nominee prior to settlement.
When a purchaser cannot settle, the purchasers will be given the opportunity to find a new purchaser to have the contract transferred in their name and finalise the settlement.
This generally happens due to the buyer not having access to funds to settle (mostly due to banks not approving loans or other government restrictions for capital outflow).
"With Coronavirus also impacting the rental market, purchasers of these properties have less incentive to settle on these apartments, which will also result in them forfeiting their original deposits," the valuation firm said.
