The steady rise in demand for medium density housing, townhouses, terraces and townhomes has taken hold of the property market since the change in off the plan stamp duty regulations at the end of financial year, June 2017. Investors that were previously solely focussed on off the plan apartment and house & land package property investment expanded their selection criteria to also include townhouses.
Mid 2017 is an important point in time for off the plan townhouse investment in Melbourne.
The Victorian house and land package sales market was at its highest point for many years. If you were trying to buy in a master planned community in the growth area suburbs of Melbourne at this time you would have had to registered and receive either a lottery number to pick a block of land from the land stage release or literally line up which, due to demand, often meant sleeping the night in your car or pitching a tent! Too much effort for no guarantee of being able to purchase your preferred block of land, size or price of land.
Demand for Melbourne off the plan apartment investment post June 30 2017 lessened due to the Victorian government state stamp duty changes in addition to many property investors in Melbourne looking to buy now for investment and move in a few years time when ready to downsize or alternatively the other way around be first home buyers who would then hope to upgrade,move out and this property then becomes their first time property investment. Townhouses are the preferred property investment product for this scenario.