smh.com.au
Docklands Units Take 37 Years to Double in Value
Docklands units took 37 years to double in median price, from $291,807 in April 1988 to $584,450 in July 2023, slower than the average 27.6 years for other inner-city Melbourne suburbs, due to oversupply of lower-quality apartments built in the 2010s and a lack of amenities.
- What factors caused Docklands units to take significantly longer than expected to double in value, and what are the immediate consequences of this trend?
- Docklands units took 37 years to double in value, from $291,807 in April 1988 to $584,450 in July 2023, defying the common belief of a 10-year doubling period. This slow growth is attributed to an oversupply of apartments built in the 2010s, which were often of lower quality and smaller size.
- What long-term strategies could accelerate property value appreciation in Docklands and similar inner-city areas that have experienced slow growth, and what are the potential risks or challenges?
- Future growth in Docklands depends on addressing current limitations. Improving infrastructure, such as schools, and completing the precinct's development will likely increase desirability and accelerate price appreciation, mirroring successful examples like Fishermans Bend. Conversely, areas with high initial prices may see slower growth.
- How do the contrasting property price growth trends in Docklands and Mornington Peninsula reflect broader shifts in the Melbourne housing market, considering factors like infrastructure and lifestyle changes?
- The slow appreciation in Docklands contrasts with suburbs like Mornington Peninsula, where units doubled in value in 10.6 to 12.8 years due to increased popularity from lifestyle changes during the COVID-19 pandemic and improved transport links. This highlights how local factors significantly impact property price growth.
Cognitive Concepts
Framing Bias
The article's headline and introduction immediately highlight the unexpectedly slow appreciation of Docklands units, setting a negative tone. This emphasis on the slower-than-expected growth in Docklands, even though it balances this with information about areas that experienced rapid growth, could leave readers with a predominantly negative impression of the Melbourne property market. The inclusion of quotes that support the slower growth narrative further reinforces this framing.
Language Bias
While the article uses mostly neutral language, phrases like "folk wisdom", "get rich" books, and "folk recipes" carry a slightly negative connotation when referring to beliefs about property appreciation. These terms subtly undermine the views of those who hold these beliefs. More neutral phrasing such as "common belief", "popular investment strategies", and "prevailing expectations" could be used instead.
Bias by Omission
The article focuses heavily on the slower appreciation of Docklands units and some other inner-city Melbourne suburbs, while giving less attention to the faster appreciation in other areas. While it mentions suburbs with faster doubling times, it doesn't delve into the specifics of those markets as deeply as it does the slower ones. This omission might leave readers with a skewed perception of the overall Melbourne property market.
False Dichotomy
The article presents a false dichotomy by contrasting the slow appreciation of Docklands units with the commonly held belief that property prices double every 7-10 years. It doesn't adequately address the complexities of the property market, such as the impact of varying economic conditions, location specifics, and property type.
Sustainable Development Goals
The article discusses housing development trends in Melbourne, focusing on factors influencing property price appreciation. The slower appreciation in Docklands is linked to its incomplete infrastructure, limited school access, and initially lower quality apartment construction. Conversely, the rapid appreciation in Mornington Peninsula is attributed to improved infrastructure (Peninsula Link freeway), lifestyle changes (work from home), and new housing developments catering to diverse buyer needs. These factors highlight the importance of sustainable urban planning, infrastructure development, and housing policies in achieving sustainable city development.