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Too many high rise in CBD

Eng Put's picture
#1

I m a bit worried. Too many highrise apartments will be here in CBD. Oversupply. May probably impact on the property market.

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Mark Baljak's picture
#2

Speaking as a buyer or a concerned observer?

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Alastair Taylor's picture
#3

Some stats:

There are 35 projects in the CBD with about 10,000 units either at Planning, been approved, rego & sales or under construction.

14 of those projects are under construction with about 4,500 units. Given most skyscrapers take about 2-3 years to build and all of the U/C towers, and those about to go U/C started and will finish at different times, it's not like all 4,500 units will be dumped on to the market at the same time.

June 2013 - June 2014 Melbourne CBD population grew by 5400: http://www.theage.com.au/victoria/population-record-rise-in-city-dweller...

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MelbourneGuy's picture
#4

You also have to factor in Melbourne's population growth of between 80-100K per year. They all have to live somewhere.

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Melbourne Muse's picture
#5

Inner Melbourne is midway through undergoing a complete shift from a low-density European sprawling city to a more middle to (in CBD/Southbank) high-density Asian-style city. This lessens the chance of any significant oversupply as this mass of development is being led by demand - of people wanting to live in the heart of one of the world's best mid-sized cities and by population growth - rather than by speculators.

As a case in point, just this past 18 months, both my mother and my best friend and wife have bought off-the-plan inner-city apartments to live in. One will be moving from the country, the others from a McMansion in the burbs.

Ultimately though it will be the market which governs when (or just after) demand has weakened and see the brakes put on a number of developments. If you intend to retain your asset for min 5 years, any period of softening should be well and truly accounted for.

Marvelous Mega-Melbourne

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drunkill's picture
#6

Just wait until all the estates start to fall apart in the outer burbs starting in the next 15 years. A lot of people will probably want to sell up rather then rebuilt, move closer in perhaps.

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Eng Put's picture
#7

Obviously there are oversupplies in Melbourne. Even worse, these houses and units are overpriced.

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Garmatt's picture
#8

Okaaaaay. What's the point of starting a thread if you are then going to ignore every response to it? Did you even read the comments from the others, or are you just hell-bent on encouraging Melbourne's impending doom......?

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Peter Maltezos's picture
#9

Simple laws of supply & demand.

Supply is not meeting demand!

I collect, therefore I am. thecollectormm.com.au

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MelbourneGuy's picture
#10

I can't see what the problem is. All these developments generally can't get off the ground until there are a certain number of presales. Developers don't risk millions by putting up buildings and hoping they can sell without some guarantee of success.

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Eng Put's picture
#11

Read this. VIC new home approval hits record high. Oversupply will ruin the economy.

https://urban.melbourne/planning/2015/01/14/victorian-apartment-approval...

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Peter Maltezos's picture
#12

^^ We have all read it and it says the opposite!

Read it carefully and the comments as well. enlightened

I collect, therefore I am. thecollectormm.com.au

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Eng Put's picture
#13

You know, Melbourne was considered as the world's most livable city in 2013. Too many highrise apartments and too many people is not favorable. Too many apartments and too few people is even worse.

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Eng Put's picture
#14

My two cents. Build highrise for office towers only. Never build highrise home.

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Alastair Taylor's picture
#15

My two cents. Build highrise for office towers only. Never build highrise home.

The 1990s called, they want their Post-modernism back. ;)

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Mark Baljak's picture
#16

Assuming there are no high-rises for living, where would the in excess of 80,000 new residents per annum live? Fringe Melbourne where there is fewer everything?

Suburban sprawl is definitely not the answer

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Eng Put's picture
#17

80000 annual new residents?
where did you get the figure?
Some people move in some people move out.

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MelbourneGuy's picture
#18

Read the newspapers! The figures are correct.

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Chris Seals's picture
#19

In fact it is slightly over 80,000 per annual, higher than any other capital city.

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Eng Put's picture
#20

Melbourne is becoming a crowded city.

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Peter Maltezos's picture
#21

TROLL ALERT!

I collect, therefore I am. thecollectormm.com.au

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drunkill's picture
#22

Move to the country then, or Canberra.

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David's picture
#23

I think we have to think really long term. The world's land space is limited. But population will always increase. We may not always know what the authorities are thinking. But I find it unthinkable that the planners will just allow Melbourne to degrade from the "World's most liveable city" to the "World's largest ghost town".

Think 10-20 years from now. My guess is you will see many migrants and foreign faces living in Melbourne. It will be a vibrant place to work and live in. The economy will be boosted by many times. No developer in the right mind will spend millions of dollars building residential homes only to find there are no or few buyers. I think they would rather go to other Australian cities instead. In the short term, Melbourne does look worrying with a huge over-supply of properties. But like I said, look farther ahead.

Anyone here agrees with my explanation?

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