APARTMENT GLUT HINDERS RESALE PROSPECTS

Apartment resale results on Doncaster Hill are unlikely to improve with the neighbouring Box Hill Activity High Rise Centre, with its superior infrastructure including Train, Tram and Bus interchange, a world class public Hospital and Tafe College, now under construction.
Whitehorse Wants Improved Transport

  Whitehorse Still Wants Improved Transport                  Double Click to Enlarge

The lack of infrastructure and the large number now being sold overseas are among the contributing factors undermining the resale prospects of Doncaster Hill apartment owners.  You would expect that apartments purchased in 2011-12 on Doncaster Hill would at least fetch the prices they were purchased for but unfortunately this has not been the case. Losses of up to $192,000 and $147,000 were recorded on larger apartments. Smaller units fared better but most were still unable to redeem their original purchase price plus commissions etc. According to researchers asking prices for units have fallen by approximately $50,000 since October 2011 while house prices more than held their own in the same period

 

Unit Prices Have Fallen Since 2011

   Unit Prices Have Fallen Since 2011                             Double Click to Enlarge

The Box Hill Activity Centre population, according to Whitehorse Council is expected to double from 3,825 people in 2001 to around 8,500 people with approximately 2,700 new dwellings needed to accommodate this growth, is similar to what is envisaged on Doncaster Hill (8,300 people and 4.040 dwellings) which has limited infrastructure by comparison.

Another reason for Box Hill being a more preferred option is that it has a better street layout that is flat, making it more suitable for efficient traffic dispersion which also encourages walking and cycling. Its most important attribute is that it is self contained in regard to employment, in contrast to Manningham, which apart from a Car Sales and Service outlets west of the Doncaster Hill Centre in Doncaster Road, has very little employment. Availability of work is the one of the first requirements in meeting the criteria for the selection of a growth area.

8 Responses to “APARTMENT GLUT HINDERS RESALE PROSPECTS”

  1. Arcadian says:

    Whitehorse did not release their activity centre plan till 2007 despite pressure from the state government. It was not until after May 2003, after its connection to the Melbourne Tram network, that it began work on planning the Centre strategy.

  2. Reed Walters says:

    If you want to know how Doncaster Hill will look in the year 2030 go for a stroll down lovely Gertrude Street, Fitzroy or the lower end of Church Street, Richmond it is not a safe place to be. Manningham is also creating a ghetto like environment by allowing such tiny cramped high rise apartment towers. The pride and perception of ownership decreases when this occurs.
    Reed Walters

  3. Nick Z says:

    In 2007, Manningham Council, in response to the State Government’s east west transport needs study, demanded extensive public transport improvements for the municipality. The submission said a rapid Bus system, a rail line to Doncaster Hill and the route 48 Tram extension were all VITAL to the success to the success of the Doncaster Hill high rise project and something car dependent Manningham residents desperately needed.
    So after 8 years of grovelling all we have are Buses which will require grade separation through Doncaster Hill to achieve Bus priority and avoid traffic gridlock on the major roads.
    Nick

  4. Wheeler says:

    The Liberal opposition under Ted Baillieu promised a Tram extension by 1 July 2010 if he was to win office in the next election, pricing it at $35 million. It was stated that there would have been about 2 accessible stops every kilometre, similar to the recent Box Hill tram extension. The Labor Government held onto power, and the extension was not built, even when the Liberals later won office in 2010.

  5. Eleanor says:

    Box Hill CBD and surrounds has no State primary school; and only one small piece of parkland -and we are a liveable city?

  6. Trevor Evans says:

    My sister raised two children on her own in a housing commission flat in Flemington. One went on and became a solicitor the other a police officer. Her children were able to play in the huge parkland and a sports ground surrounding their high rise flat without having to cross busy roads which they will not be able to do in Box Hill or on Doncaster “Hell” unless they are supervised and driven there through heavy traffic. There were volunteers at Flemington to keep watch in after school hours and the area had its own cricket and footy teams. These facilities are absolutely vital to the growth of children a fact completely ignored by the planning bureaucrats. I suggest that if there is bureaucrat reading this please go to Google maps and type in Racecourse Road Flemington and you will be able to see how much open space has been provided. And by the way all of the units had at least two bedrooms.

  7. Nick says:

    I am not surprised at the resale losses.. even in the lower price, more affordable, price bracket. Council had approved one high rise development that had 70 one bedroom apartments with the majority having only one window!
    This is where purchasing off the plan can be a trap..just because Manningham council had allowed the development it doesn’t mean it is not sub-standard in design. It is a different story when you go to resell them because potential buyers won’t pay top price when they see the apartment has no window in the bedroom. If you write to council about the bad design all you get in response is a letter with all this pasted material justifying their lack of scrutiny. Flowery stuff like …..”various design concepts will meet the needs of all people in a vibrant village”… and all that jazz.

  8. Bayne-West says:

    “Road-based public transport services will fail to operate successfully on Doncaster Hill due to the delay and impact, primarily to buses, caused by ongoing development and increasing traffic congestion in the activities area”…… Manningham Council 2012

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