Over the last 10 years, high-rise apartment prices in Melbourne and Sydney have underperformed houses by more than 50%, and if you have been listening to our education for the last 15 years, this would come as no surprise whatsoever!
Core logic data indicates that Melbourne’s high-rise apartment market is by far the worst of every other city in Australia. As we’ve been banging on about for years, high-rise apartments rarely make the grade as quality investments, if your goal is capital growth. Low land-to-asset-ratio’s is just one reason for this as we have opined in an article for Domain, in Podcast Ep#16 “unpacking land to asset ratio” and alongside property professionals CateBakos and Petewargent on landtoassetratio.com.au.
It seems that this message is starting to sink in for the broader public. A survey of property investors has shown that investors are shying away from off-the-plan purchases. This is due in part from highly-publicised failures and defects in high-rise apartments, such as the Opal Tower in Sydney.
Our good friend, Peter the ‘Property Professor’ Koulizos, Chairman of Property Investment Professionals of Australia and Co-host of The Property Planner, Buyer and Professor Podcast highlights the issues surrounding high-rise apartments and why you should stay away from them.