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Melbourne's Apartment Domination

Market Insights
9 years ago
1 minutes

With the release of a new report, it has become even more prevalent and obvious that Melbourne's domination of the apartment market is still at the forefront of the industry.

This latest analysis done by BIS Shrapnel reveals that Melbourne's apartment market is the strongest in the country, and will continue to be for the next three years.

With over 6,600 apartment completions in 2014, the Inner Melbourne Apartment Market Brief asserted that investor demands have been strong, and will continue to be strong, ever since the Global Financial Crisis in 2009 - the crisis that seemingly only skimmed Australia, and left the rest of the world flailing.

The market was held and stabled by attractive yields and low interest rates that was then coupled with a clear uncertainty and wobbliness present in other investment markets.

Over the course of the next three years, approximately 18,500 apartment units will be built, with 76% of them already in construction, with the remaining 24% involved with pre-sales/off-the-plan purchases.

Overseas demand, made more attractive with lower borrowing costs, buoyant economic conditions and the ability to invest in a more stable political sphere, is continuing to appeal, with no softening predicted as yet. Melbourne's CBD, Southbank, Docklands, St Kilda Rd, Queens Rd, Carlton, Port Melbourne, St Kilda and South Yarra are the dominated suburbs for apartment developments, and according to ApartmentDevelopments.com.au, the likes of Brunswick East, Prahran and Cheltenham are being predicted to see higher growth and interest in the coming months and years.