Advertisement
23 posts in this thread / 0 new
Last post

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.

Back to top
Mark Baljak's picture

Speaking as a buyer or a concerned observer?

Back to top
Alastair Taylor's picture

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...

Back to top
MelbourneGuy's picture

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

Back to top
Melbourne Muse's picture

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

Back to top
Andrew's picture

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.

Back to top
Eng Put's picture

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

Back to top
Garmatt's picture

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......?

Back to top
Peter Maltezos's picture

Simple laws of supply & demand.

Supply is not meeting demand!

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

Back to top
MelbourneGuy's picture

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.

Back to top
Eng Put's picture

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

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

Back to top
Peter Maltezos's picture

^^ 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

Back to top
Eng Put's picture

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.

Back to top
Eng Put's picture

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

Back to top
Alastair Taylor's picture

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

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

Back to top
Mark Baljak's picture

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

Back to top
Eng Put's picture

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

Back to top
MelbourneGuy's picture

Read the newspapers! The figures are correct.

Back to top
Chris Seals's picture

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

Back to top
Eng Put's picture

Melbourne is becoming a crowded city.

Back to top
Peter Maltezos's picture

TROLL ALERT!

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

Back to top
Andrew's picture

Move to the country then, or Canberra.

Back to top
David's picture

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?

Back to top

Development & Planning

Wednesday, December 13, 2017 - 12:00
The swirl of development activity in Footscray has found another gear as new projects are submitted for approval, or are on the verge of beginning construction. Two separate planning applications have been advertised by Maribyrnong City Council; their subsequent addition to the Urban Melbourne Project Database has seen the overall number of apartment developments within Footscray in development swell to 40.

Policy, Culture & Opinion

Monday, November 20, 2017 - 12:00
The marriage of old and new can be a difficult process, particularly when the existing structure has intrinsic heritage value. In previous times Fitzroy's 237 Napier Street served as the home of furniture manufacturer C.F. Rojo and Sons. Taking root during 1887, Christobel Rojo oversaw operations though over time the site would become home to furniture manufacturer Thonet.

Advertisement

Visual Melbourne

Friday, August 25, 2017 - 07:00
The former site of John Batman's home, Batman's Hill is entering the final stages of its redevelopment. Collins Square's final tower has begun its skyward ascent, as has Lendlease's Melbourne Quarter Commercial and Residential precinct already. Melbourne Quarter's first stage is at construction and involves a new 12-storey home for consultancy firm Arup along with a skypark.

Transport & Design

Friday, December 15, 2017 - 11:00
Infrastructure Victoria unveiled a new round of research into its larger programme of work dealing with managing transport demand. The authority contracted Arup and KPMG to produce the Melbourne Activity Based Model (MABM) and while it is new, it is considered fit for purpose in the strategic context.

Sustainability & Environment

Tuesday, October 24, 2017 - 12:00
Cbus Property's office development for Medibank at 720 Bourke Street in Docklands recently became the first Australian existing property to receive a WELL Certification, Gold Shell and Core rating. The WELL rating goes beyond sustainable building features with a greater focus on the health and well-being of a building's occupants.