Australia Real Estate Prediction 2016 - Melbourne CBD Market Crash for Overseas Property Investors
Beijing, China, January 3, 2016 (Newswire.com) - There are three little pigs of circumstances that has created a unique set of market conditions that will force property investors into financial duress.
- Piggy One - Mammoth over supply effecting occupancy and rentability
- Piggy Two - APRA finance conditions reducing LVR’s for overseas investors
- Piggy Three - Bank valuers reducing purchase prices by up to 20%
During the GFC, Victoria was building about 8000 to 9000 apartments a year. In 2015, Victoria's 38,208 approvals of new apartments accounted for nearly a third of the national total of 187,115 the highest for the first time in Australia’s history. Melbourne CBD approvals for 6 months of 2015 was a enormous 12,516. The scale of Melbourne’s high-rise boom, can best be demonstrated when you add unit approvals for inner city Brisbane, Sydney and Perth over the same period, was only 11,524. Source: [Activity Monitor] https://data.melbourne.vic.gov.au/Property-Planning/Development-Activity-Monitor/75r3-8eee
"Many overseas investors will be disappointed that their off-the-plan, Australia property investment is worth less than the purchase price "
Scott O Talbot
To understand the Melbourne CBD and Southbank property market, supply and demand, immigration and birth rates, valuations and Government policy is critical due-diligence to prepare the canvas prior to painting a picture of the real estate market.
Read the full report: http://uchkconsulting.com/big-bad-wolf-melbourne-apartment-market.html
