More bad news for apartment owners

Melbourne apartment prices have crashed

http://www.msn.com/en-au/money/personalfinance/melbourne-apartment-prices-have-crashed/ar-BBr3GMu?li=AAgfYrC&ocid=mailsignout

“Buyers of Melbourne apartments in the last year or so are being forced to take a haircut of up to 30% off the price they paid to get a sale, according to new research.”

“What many property investors don’t realise is that they could be paying the developers a 20% to 40% margin on the construction cost. Apartments in areas with massive numbers of units quickly become commodity-type assets, where the lowest price becomes the biggest sale factor, with sellers forced to match the lowest asking price in the area.”

Why is SALTA adding to the apartment glut in Abbotsford? The two proposed developments combined will add around 650 new apartments.

Overwhelming the river corridor with huge and obtrusive developments not only ruins the amenity for all Melbourne users, it devalues other apartments in the area, both by adding to the glut and devaluing the property of people who already live here, and by decreasing the green space which apartment dwellers need.

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