Skysea International have been involved with a lot of off the plan projects over the last ten years and take it from us, Melbourne isn’t just another city – It’s the world’s most liveable city voted seven years in a row and what’s more, it’s becoming very seriously big and very quickly, boasting a population now of 5 million and on average is growing at the rate of 150,000 new residents a year! Over one million people have made Melbourne their home since 2011.
There’s no doubt about – Just about everyone wants to live here!!
More Importantly for residential investors, Melbourne is forecast to have substantial increases in property values given the obvious demand which will follow the population growth over the next 5-10 years estimated to be within the vicinity of 750,000 to one million+ people. Purchasing an apartment now represents an excellent opportunity to gain strong capital dividends because the city is simply running out land for developers to put new buildings!
Muti-story developers, residential and commercial, can now only go west towards Docklands, West Melbourne, North Melbourne, and Carlton and maybe selected parts of Southbank because there’s virtually just no more room available in the Melbourne CBD.
From a feasibility perspective, the few blocks that are still available in the Melbourne CBD, developers will be hesitant to proceed simply because of the lack of viability with regard to block size, the new high rise building regulations that have just come into effect and the high risk criteria set down by lenders, not to mention the rates involved with the borrowing of those levels of collateral necessary to not only get projects half sold off the plan let alone off the ground.
The only choice developers will have is the development of established buildings which will involve a lot of restrictions from both a council, availability and heritage perspectives, along with planning approval processes, not to mention costs and with all of this in mind, given past performances and trends, if you do the maths, it makes a lot of sense to buy an apartment in the Melbourne CBD while the opportunity presents itself at current price levels right now.