We have all seen the real estate market off to a record start in 2021, even amongst periodic lockdowns. Outpacing the rest of the market, in particular, there has been incredible demand for large three-bedroom apartments in Docklands. While Docklands has seen a growth of 2% per annum, three-bedroom apartments have outperformed an average of 6.5% in the same period.
Why might you ask?
Given the makeup of apartment sizes in Docklands, three-bedroom properties are certainly the minority. Comprising of less than 15% of all properties in Docklands. Due to the scarcity, we are continuing to see strong interest from buyers that often results in properties selling for prices over the advertised range. This is being fueled by a very broad range of buyers who are mostly looking to occupy their new purchase.
The demographic of Docklands has certainly shifted with the completion & opening of Docklands Primary School in January of this year. Opening its doors to more than 500 new students, all of which are living in Docklands’ surroundings. This has been a huge drawcard for young families, choosing to raise a family in an urban setting, while enjoying the freedom of open outdoor space the area provides.
We have seen a substantial increase in suburban downsizers looking to divest of their large freestanding homes with all the continued maintenance required, opting for turnkey, secure three-bedroom apartment living. Who wants to spend their valuable free time mowing lawns, cleaning gutters, & washing windows? In apartment buildings, those mundane tasks are taken care of for you. You can just lock up & leave with the knowledge that your home is safe & secure.
Similarly, we have seen a rise in regional Victorians seeking a second city home. One where they can take full advantage of all that Melbourne has to offer. With Docklands sitting at the city’s doorstep & included in the free tram zone, there is nowhere that is not easy to reach via public transport. These families are searching for three bedrooms so that they can still gather together with family & entertain friends in comfort & space.
Of course, low interest rates & other government incentives have further impacted the three-bedroom market in Docklands. However, with developers continuing opting to build mostly single and double bedroom apartments in recent years, the supply and demand implications are benefitting those three-bedroom owners throughout Docklands and the inner city. With limited inventory on the market, this is being reflected in the higher than average number of attendees at inspections every weekend.
While Docklands & the CBD have been hit hard throughout this COVID pandemic, this desire from such broad & diverse sectors of the community to want to call Docklands home provides nothing but faith that Docklands truly is a wonderful place to be & to live.