Landlords and vendors in some of Melbourne’s apartment towers have been forced to reduce rents, whereas properties have also sold at a loss over the last year.
The properties have been tarnished due to Airbnb leasing and parties. The murder of Laa Chol, 19, at the EQ building in July last year have made apartments in the tower undesirable.
A two-bedroom unit listed in April has had a $75 per week price cut, whereas another in the same block reduced its price by $50 per week. Sales in the tower have dropped with just one sale since the start of last year, whereas slipping prices are noted around the area where it is common for new apartments to depreciate once they are lived in.
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Angie Zigomanis, BIS Oxford Economics senior manager of residential property, told Domain that a damaged perception could hurt resale values. “Anything that may paint an apartment or complex in a negative light makes people happy to look elsewhere,” he said, adding that Docklands’ reputation for hosting short-term rentals had not been positive.
Short-stays are generally a big turn-off for buyers in the CBD, Southbank and Docklands.