2014-10-14-莱坊-Melbourne_Residential_Apartments_Brief_Q3_2014_4页_802kb

Melbourne Apartments Market Summary: Q3 2014

Overview

• Market Trends: Apartment values and rents continue upward trajectory (2013-14: values +6.0%, rents +2.6%).
• Vacancy Rate: Stable at 2.9%, below the 3% equilibrium.

Key Drivers

• Foreign Investment: 36% of sales in 2014, with purchases like 93-119 Kavanagh St (S$145M) and Kinnears Rope Factory (S$60M).
• Population Growth: Projections of 2% annual growth over the next 30 years, sustaining demand.
• Infrastructure: Ongoing projects like Dingley Bypass, Melbourne Rail Link, and Airport Rail Link to boost development.

Market Data Highlights

Table: Key Indicators – June 2014

• Building Approvals: 4,520 in 2013/14 (up 9.4% YoY).
• Value of Work Completed: $5.82 billion in new apartments (2013-14).

Outlook

• Supply Concerns: New inventory may increase vacancy (currently stable).
• Economic Factors: Low interest rates (forecast to remain until mid-2015) and strong GDP growth (Victoria: 2.4% YoY).
• Future Trends: Population growth, supply increases, and higher construction costs.

Recommendations

• Target areas with high rental yields (CBD & Inner > 4.5%).
• Monitor vacancy trends closely in response to supply growth.
• Consider long-term demand drivers like infrastructure developments.

Source: Knight Frank Residential Research, Q3 2014 Market Brief.