Central Equity : Melbourne Articles :

"The Paris of the Antipodes"

Investment in Melbourne is booming. Melbourne's economic turnaround and its attractions are bringing people and investment from all around the world. This article first appeared in "Accounting Post" 31 August 1996. and is reprinted here with permission from the publisher.

Hailed as being the "World's Most Livable City" by Washington's Population Crisis Committee, Melbourne, the capiWith representatives of over 140 different nationalities making up Melbourne's population it is hardly surprising that the city is also famous for its excellent restaurants and wide range of international cuisine. From secluded little bistros and the restaurants of Chinatown to the sophistication of haute cuisine, there is something to tickle everyone's palette.

The shopping is excellent and the public transport system, "the Met", which offers train, tram and bus transport on one ticket, is regarded as being one of the best in the world, making Melbourne an easy place to travel around cheaply and quickly.
The train service is also excellent, reaching out well into the suburbs and beyond as well as having underground routes. The continuous loop which makes up the railway system means that it is possible to commute to the city centre from 50km away without having to leave your seat once you are on the train.

The city is also spacious. The traditional Australian ideal of each family home being situated in 1/4 acre of land has led to huge sprawling suburbs covering 1700km2. In total Melbourne shares over 6202 km2 of land between about three million people, meaning each individual has an approximate average of 2067 m2 to themselves, and as it is flanked by the sea on one side and vast tracts of open bush and wine producing countryside on the other. Melbourne has an atmosphere of openness.

Architecturally, Melbourne also rivals, or perhaps even surpasses, Sydney. The city is now mainly taken up by apartment blocks and spectacular sky scrapers, but nestling next to these are fine examples of 19th century architecture, carefully restored to their original splendour and converted into shopping malls, office buildings, hotels and galleries, unparalleled by any in Australia. These buildings are relics of the age when the gold rushes of the 1850's brought wealth and a new population to the region. Out in the suburbs, as well as beautifully landscaped gardens, are some of the finest examples of domestic architecture to be found anywhere in the country.

Melbourne is also a Mecca for sporting enthusiasts with its international standard facilities making it possible to enjoy horse racing, football, cricket, tennis, basketball, jogging, walking and cycling within the city itself. The Yarra river, running through the city and the bay on which it is situated provide opportunities for sailing, canoeing, fishing and water skiing and a little way out of the city you can go surfing, bushwalking and skiing. The State Government aims to host a major international event in Melbourne every month, so far these have included The Ford Australian Tennis Open, The Formula One Grand Prix, The Melbourne International Festival, The Melbourne Racing Cup Carnival and The 500cc Motorcycle Grand Prix.

Culturally, Melbourne is a varied and cosmopolitan city. Its fascinating history and diverse population mean that there is a huge range of museums, cultural events and historic attractions to enjoy all year around.

But there is far more to the city than great shopping, sport, weather and facilities, it is also a centre for big business. The economy of Victoria makes up 25% of the Australian total and it is widely acknowledged that it is the region's economic strength that has been responsible for the upturn in the Australian economy as a whole.

Melbourne is flourishing economically, having emerged relatively unscathed for the recession at the tail-end of the '80s and early '90s to have the highest rate of economic growth in Australia and an ideal climate for capital growth.

The region's government is partly responsible for this. Because of its pro-business policies, national and international companies have flocked to the region. Attracted partly by the city's pleasant working conditions and high standard of living the arrival of these companies helps to improve these conditions, which in turn attracts even more business.

The infrastructure and facilities of Melbourne are also developing rapidly, with nearly four billion Australian dollars currently being invested in a variety of projects including roads, museums, sporting facilities and Australia's largest exhibition centre. Investors are attracted to Melbourne by the enormous potential for capital growth, the huge savings it is possible to make on stamp duty, increases in rental costs and accelerated depreciation and taxation benefits.

Financially Melbourne is stealing the lead from Sydney. Ever since the gold rushes first brought money to the region, Melbourne has been a centre for investment and industry. The city is home to some of Australia's largest and most successful companies, including BHP, the National Australia Bank, CRA, Western Mining, Woodside Petroleum, Amcor, Foster's Brewing and Coles Myer. In fact, out of the 20 leaders on the Australian Stock Exchange, 11 have their headquarters in Melbourne, and the city is home to 110 of the ASX's top 500 companies. Between them these Melbourne based companies earned A$4.7 billion, nearly half of the amount earned by the ASX's top 500's altogether. They also brought in nearly 40% of the top 500's total revenue, A$60 billion of the total A$155 billion.

(Accounting Post - 31/8/96)