High demand for Melbourne CBD apartments attracts long term investors: HTW residential

High demand for Melbourne CBD apartments attracts long term investors: HTW residential
High demand for Melbourne CBD apartments attracts long term investors: HTW residential

Local drivers for the residential market in the Melbourne CBD include the influence of the educational sector, population growth, local and international migration as well as local employment, according to the latest The Archibald (HTW) residential report. 

The current COVID-19 epidemic is going to have a negative impact on key drivers, so it will be interesting to see what impact this may have on the property market in the short to medium term, the valuation firm said.

"The performance of the property market in the CBD is a result of the demand for rental properties in this area and the attractive yields that come with it," the valuation firm said. 

The report notes this is due to the strong migration and appeal of Melbourne to higher education students coming from other states and countries as well as workers relocating to be closer to the business district. This creates a high demand for apartments in the city, which makes it attractive for long term investors.

Drivers impacting the residential property market are also quickly changing in light of the recent events this year, such as the Australian bushfires and the global pandemic of the Coronavirus.

"We have since seen cuts to the interest rate by the Reserve Bank of Australia to a historic low of 0.5 percent and economic stimulus packages to be announced with the aim of boosting the economy and easing the financial fallout of these events," the valuation firm said. 

"Notwithstanding the COVID-19 crisis, with the recent announcement of a lowered cash rate, there may be an increased interest for those seeking to buy their first home as applicants will be in a better position to refinance their current mortgage so they are able to make lower repayments each month and less interest over the life of the home loan." 

A two bedroom apartment located in the heart of Melbourne CBD has recently sold for $490,000.

The 2107/11 Rose Lane home (pictured below) comes with designer kitchen, open plan living and secure car park. 

It is located within moments to shops, public transport, restarts and cafes. 

High demand for Melbourne CBD apartments attracts long term investors: HTW residential

A new listing is a one bedroom Melbourne CBD apartment priced at $329,000.

The 25th floor apartment at 2512/181 A'Beckett Street (pictured below) comprises bedroom, bathroom, open plan living and dining and stone-topped kitchen. 

The building features resort-style facilities, including gym, lounge, bike storage and rooftop BBQ terrace. 

High demand for Melbourne CBD apartments attracts long term investors: HTW residential

Note regards COVID-19

This edition of Month In Review had its topic defined in late February with submissions from our offices collated through to late March. During this period, shifts in the social and economic landscape due to COVID-19 became increasingly dramatic, as demonstrated by the varied information provided by offices over the course of three weeks.
This month’s residential theme on baseline property market drivers remains a common thread, and provides an indication of what influences to monitor as the property sector recovers post-crisis.
Tags: 
Melbourne CBD Htw

Comments

Be the first one to comment on this article
What would you like to say about this project?