According to Melbourne Boutique Property Director Kim Davey(formerly Donazzan Boutique Property), the CBD has its own challenges, but sales are still strong throughout the city.
Mr Davey said that good properties still do sell, with the heritage and prestige markets performing well. A one-bedroom apartment at 35Spring St recently sold for north of $900,000. The good results in the prestige and heritage markets reflect a shift in the demographics of buyers, with people from overseas and rural Australia looking to buy apartments for their kids studying in the city. There has also been an increase in empty nesters looking to move into the CBD who tend to prefer the heritage buildings. The former Herald-Sun building at 2 Exhibition St is one such example of the style of apartments that are selling well, in Mr Davey’s opinion. In July of this year, a one-bedroom apartment at 2 Exhibition St that was originally sold for$360,000 in 2004 recently sold for $720,000, achieving an annual growth of 3.53per cent.
Similar trends can be seen in the city’s rental market, with select property types outperforming others. There are students who are looking to rent close to their university, as well as people who are looking to move into the CBD and want to try before they buy. Mr Davey said that rental prices are sitting just above pre-pandemic levels and supply is not an issue, with thousands of vacant properties currently available. “It’s not like it was back in March and April this year where rents were going through the roof,” he said. “They’re a little bit above where they were before COVID.”
To help navigate the market challenges, Mr Davey said the best thing for prospective buyers and renters to do is to find a reliable and secure agent and property manager.
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