The recent adverse publicity about falling demand for Melbourne inner city investment apartments is misleading
The falling demand for high density inner city investment apartments in Melbourne has been inaccurately communicated as affecting the entire Melbourne property market.
Jeff Grochowski, the principal of Accrue Real Estate based in South Melbourne, a prominent source of investment property, said that investors need to be better informed about investment options in Victoria.
"Falling demand due to an oversupply of inner city Melbourne apartments is not likely to burst the property market. The adjustment will be confined to high density inner city investment products and will not adversely affect the low density outer suburban apartment market."
"The widely reported demand fluctuations primarily affect the inner city area as it is a market unto itself. Most people in Melbourne want to live in the suburbs and there will always be strong demand for apartments in outer suburban areas because most people would rather live in East Malvern instead of Pakenham East for example. The inner suburbs offer a mix of lifestyle and employment opportunities."
"Inner city apartments are largely bought by investors to rent to students or retirees and not to families."
Industry statistics show that the "Docklands Effect" which affected apartment prices and caused settlement issues when off plan purchases were affected by valuations for finance coming in way under contract prices. Inner city high density living is a market in itself and demand is not representative of demand for town houses in outer suburban areas.
Jeff Grochowski, went on to say that "There are two segments in the Melbourne apartment market. High density inner city and low density outer suburban properties."
"The adverse comments and media reports about inner city issues may dampen outer suburban demand but it is not a genuine issue. Melbourne is suburban centric unlike New York, where Manhattan Island is an apartment living inner city enclave"
"The majority of the Melbourne population choose to live in the suburbs and as a result, demand continues to be strong"
"Investors should remember that it is not practical to bring up a family in an apartment. A three bedroom suburban townhouse is fine for raising a family particularly if buyers or renters look for homes close to facilities like schools, transport, shopping and recreation options"
At Accrue Real Estate, we see a strong shift in demand from inner city high density apartments of suburban low density townhouses and that is where we source most of our stock for clients. Most of our sales are off market transactions involving newly created projects"
How to source no obligation property investment advice
Jeff Grochowski of Accrue Real Estate is available to answer any questions from property investors.
Jeff is a licensed real estate agent who works for buyers to source Victorian investment property. Jeff specialises in tailoring direct property transactions that match the specific needs and objectives of individual clients.
People with a question about sourcing an investment property can contact Accrue Real Estate at info @ AccrueRealEstate com au
Accrue Real Estate Pty Ltd | Licensed Estate Agent
Office 92 York St South Melbourne, VIC 3205 Mail P.O. Box 416, South Melbourne, VIC 3205
P (03) 9696 0085 F(03) 9696 0075 W http://www.accruerealestate.com.au