'Melourne inner city apartments value doubling every 2 or 3 years' is the worst quote I have heard all year!!!
I live in a house in inner city Melbourne (one of the most blue-ribbon suburbs in fact). My home is valued at approx $2.5m-$3m and I can tell you, while real estate had a terrific year last year, prices are already down about 10% from the highs reached late 2007.
Friends have sold in the past 3 months and the prices they obtained were prices they would have been more than happy with at the beginning of 2007, but their expectations were quite high come end of 2007 and so were dissappointed.
Just look at how clearance rates have dropped to approx 60% from 80%!!
Apartments went through a very tough period a few years ago in Melbourne with a bit of a glut. Again last year they had a good run, however, to doule every 2 or 3 years is just rediculous. Dulop1, I need to ask, are or were you a real estate agent? Comments like these can only come from real estate agents who are protected from providing baseless projections.
Let's have a think about it.....you buy an apartment in Melbourne for $350k a couple of year ago. You are now saying that these are worth $700k. And in another couple of years the same 2 bedroom will be $1.4m???
Houses are a far better investment than apartments gven the ability to improve and differentiate. Now, I own an investment property (house) in Prahran and an apartment in South Yarra. One thing I can tell you is that the apartment has not doubled in the ast two or 3 years.
So, those out there, please do not get foooled y such outlandish statements. This where I think you need these forums to be regulated.
