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Ph (03) 9600 1111
Fax (03) 9278 8830
Level 9, 365 Queen St
Melbourne, Vic 3000
Australia
Southbank Central
Inspect at
191 CityRoad Southbank
Melway: 1D M6
Mon - Sat, 10am to 5pm
Sundays 12 to 5pm |
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News & Editorials
Every week Central Equity writes a number
of news editorials which appear in Melbourne newspapers. This weeks article is posted below.
Click here
to access our archive of news editorials
23/12/00
MELBOURNE
CBD INVESTOR UPDATE
Inner city apartment living has really become a part of Melbourne.
Melburnians have embraced the move to the inner city whether they
are investors or owner-occupiers.
The inner city has been popular throughout the world for decades,
however, it only became a feature of Melbourne around 1992, or some
five or six years ago.
Although Melbourne has small establishments with older apartments
in the CBD and on the fringe of the CBD, ie. Southbank, inner city
living only started taking off in the last decade. Many developers
are attempting to obtain permits and advertising apartments, giving
the impression of there being a wide variety available. However, in
reality quite the opposite is true. Quite a number of major real estate
firms and valuers have now come to the realisation that there may
well be a shortage of residential apartments. To compare Sydney with
Melbourne, the Australian Bureau of Statistics reported Sydney has
11,412 units completed or under construction and Melbourne only has
6,031, which is almost half of Sydneyšs number. Furthermore, the population
for Sydney is 4 million whilst Melbournešs population is 3.5 million.
This statistics gives an indication of the real shortage of apartments
in the Melbourne.
For any substantial project it would take approximately three years
from the time of acquiring the land to the time taken for designing,
obtaining a permit, undertaking marketing, then of course, the construction
and final settlement. Due to the time delay, for a major city like
Melbourne, there are relatively small numbers coming into the market
over regular intervals.
Melbourne City Council recently released a report "Census of Land
Use and Employment" This report indicates that for the period 1992
to 1997, there has been an increase of residential properties in the
central business district from 506 to 2,462 properties. Over a five
year period that is less than 400 apartments per year. On our calculation
and if these figures are accurate, it would mean that Central Equity,
Melbournešs largest inner city residential developer, has completed
slightly more than 60% of all residential apartments in the CBD and
Southbank.
We must view this in the context of a major capital city such as Melbourne
and the changes in the lifestyles being undertaken. This very modest
growth however is being fuelled by some other very interesting facts.
There are billions of dollars being invested in Melbourne inner city
areas with the Southbank alone having some $5Billion being spent on
infrastructure, entertainment and general development. In the CBD,
further changes have occurred such as $200 Million on Federation Square,
the City Link, the new Aquarium, and the Redevelopment of Spencer
Street Railway Station as part of the Linking Victoria Initiative
and many others.
Victoria has also recorded the highest jobs growth 81.5% as compared
to the next highest being New South Wales of on 79.5%. Unemployment
rate is at an all time low at 6.4%, year end October 2000. The Melbourne
City Council also estimates that employment in the central business
district and Southbank area has increased. It then goes to follow
that there will be more and more demand from owner occupiers, investors
and tenants, for quality accommodation in and around the CBD.
Residential apartment prices will also be underpinned as the competition
for land increases and commercial and office developments once again
become viable, as some industry sources are now predicting.
Of course, you must always still bear in mind the fundamentals of
investing -- buying in a good location from a reputable developer
who will deliver what is promised, like Central Equity. .
Click
here
for the archive of Central Equity editorials
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16/12/00
9/12/00
25/11/00
18/11/00
11/11/00
4/11/00
28/10/00
13/10/00
13/10/00
6/10/00
7/07/00
23/06/00
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 for other articles please visit our archive.
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