Docklands homes are becoming popular among first-home buyers and downsizers, with investors and foreign buyers staying on the sidelines.
Reduced prices for properties, particularly apartments, have made living in the waterfront precinct more attractive.
Renters are also finding it more affordable to buy as units, especially smaller one-bedroom apartments, are in oversupply because investors are selling off their properties. This is because the rental market has been depressed because of a lack of corporate tenants due to COVID shutting international borders and a lot of short term/ Airbnb short term rentals flooding the market.
“The prices of apartments have adjusted downwards by around 10 per cent, depending on the type, location and size of the building.
Ms Geddes noted a change in buyer profiles since 2020, after the pandemic started.
“There are lots of first-home buyers and professional couples looking and also retirees and downsizers moving from the suburbs into the city,” she said.
“These buyers have sold their houses in the suburbs and are eyeing larger three-bedroom apartments, where they can downsize and enjoy the low-maintenance city lifestyle.”
The market for two and three-bedroom apartments was competitive, as prices for such properties have remained stable, she added.
This market segment was being driven by high demand from owner-occupiers such as downsizers and first-home buyers.
Demand from investors and foreign buyers have fallen because rental values have declined sharply, by as much as 40 per cent for some one-bedroom apartment types.
“The prices for larger apartments have not risen much or stayed the same as pre-Covid times, depending on the type and location of the building, size, amenities and views,” Ms Geddes said.
These properties can fetch from the mid-$600,000s to $800,000, with prices also dependent on the number of parking spaces and whether there are bay or harbour views.
Despite some negativity about the market, Barry Plant agents are seeing multiple buyers for each listing, particularly for larger apartments.
“While there are still enough buyers for apartments, houses are doing better but with limited supply,” Ms Geddes said.
A quiet, convenient lifestyle and easy access to the city centre without concerns about safety and homelessness-related issues are also making living in Docklands more attractive.
The large number of one-bedroom apartments on the market have seen rents decline and reduced demand from buyers.
“These apartments are in the $250,000 - $450,000 price bracket and data has shown as many as 900 one-bedroom apartments on the market,” Ms Geddes said.
“There is a glut at the moment and these apartments are mostly investor-owned and bought, and it will take some time for the rental market to recover.”