I know something is up when I suddenly get multiple calls from friends or contacts who know about what I do here at RunningStream. These days, the calls are enquiring about Melbourne properties. (which is fine.) Specifically, about investing in Melbourne CBD apartments. (which is NOT fine.) I know then that my friends must have seen the news about the cut in the Australian interest rate, cheap AUD, the inherent stability of the Australian housing and the accelerating growth in home prices. Everyone wants to jump onto the bandwagon of owning an Australian property these days.
Many agencies here in Singapore are selling Melbourne inner-city properties in Southbank, Docklands, Queen Victoria Market or Flinders and Spencer Street in the CBD. Go to any website and you will likely see advertisements on a property fair featuring these CBD properties. Many local investors buy into the advertisements without fully understanding the situation on the ground. I have already said my piece in an op-ed written last year after making a business trip there. (http://www.runningstream.com/staff-blog/on-the-ground-in-melbourne).
I love Australia and I love Melbourne so I just cannot help but find an excuse to get out of Singapore (and the office) to head to Melbourne whenever I can. This trip, I am pleased to announce, was for accepting my offer for the Australian PR and to assist a client with one of his acquisitions in Melbourne. I’ve also managed to snivel a few more days of working leave to do some scouting and surveys of interesting areas in Melbourne.
My main objective was to check out some hot spots for property investing. We’ve all spent many hours on research here in RunningStream. Now, I will be heading to the suburbs to see if the situation on the ground reflects the numbers and our expectations. I spent about 4 days driving around to visit different sites and around different suburbs to see how each of them are developing and growing.
Melbourne is an excellent place to go for a holiday and wonderful place to be living in. There’s a nice mix of city life and country life. What appeals to the Singaporean in me is the good food that can (almost!) rival us in variety and quality.
I’ve just returned from a holiday there. A holiday should be just that, all pleasure no work. But invariably, as a portfolio consultant, a trip to an area where we have client’s investing in will result in me putting aside a couple of days for work (It’s a good thing I have a patient girlfriend.)
One word comes to my mind the moment I had an unobstructed view of the CBD from the Queen Victoria Market: Oversupply. The number of cranes rising from the panaroma of the city is quite bewildering. What does all this mean for the local property market?