Apartments may drop in price in central Melbourne

  • 2016-04-06
The value of some apartments within the business district of Melbourne declined recently.

Sales data shows that a meaningful proportion of apartments inside central Melbourne are not holding their value. This does not mean that estate agents will stop using catalogue printing from local printing services, because continuing to stimulate interest will be important for them, but it could mean that residents of nearby Clifton Hill could be in a position to bag a bargain.

It seems that the recent apartment boom, which has had a big impact on property prices in Melbourne, could be on the cusp of coming to an end. Jeff Xu is the chief executive of the property developer Golden Age, and explained the current situation for the Australian Financial Review, saying:

“Some apartments will lose value, but that does not mean every apartment project will lose value. It depends on the location, quality and how you manage it as well.”

The conversation about a possible dip in the prices for apartments in central Melbourne has been going on for quite a while now. This kind of talk began because of a perception that a period of excess supply was on the way.

Last November, Melbourne was faced with the prospect of another 20,000 apartments being constructed. Around half of the property being built was within the inner core of the city, according to statistics compiled by the Development Activity Monitor (DAM).