Ivanhoe Takes on Apartment Market

Apartment purchasers are backing Ivanhoe as one of Melbourne’ new hot spots with 206 of 222 new apartments sold before construction begins on three new projects.

In Westley Avenue, a 127-apartment project, which is currently underway, has sold out, while the 51-apartment Decco project at 55 Lower Heidelberg Road was 90 per cent sold prior to construction and 33 of 44 apartments at 206 Lower Heidelberg Road sold in the first 10 weeks of formal marketing.

According to Savills Australia Associate Director, CBD & Metropolitan Sales, Jesse Radisich, enquiry for a site just released to the market with approval for 43 apartments, has been met with very strong interest.

Mr Radisich, who is marketing the 47-49 Norman Street (cnr Noel Street) property with Director Julian Heatherich, said the 1,653 square metre site, which is close to Ivanhoe Railway Station and prime retail on Upper Heidelberg Road, had generated some of the strongest enquiry levels of any recent site with an apartment permit.

"The response to the initial marketing for Norman Street has been extraordinary, but it is not all that surprising given Ivanhoe’s close proximity to the CBD, the availability of first rate services and the demand that has seen such a fantastic success rate for other projects," Mr Radisich said.

"What this site also has going for it is a location which is arguably better placed in terms of direct proximity to local services including the railway station, Ivanhoe’s main shopping precinct and Ivanhoe Grammar/Ivanhoe Girls Grammar."Ivanhoe is just eight kilometres and a 20 minute train ride from Melbourne’s CBD. It boasts first rate services, a village-style retail strip known for its cafés and fashion houses, several parks and gardens, including a golf course along the Yarra River, and quick access to the Eastern Freeway.

Mr Heatherich said a key driver of apartment sales in Ivanhoe had been a local population comprising a balanced demographic with many downsizers, small families and professional couples.

"This demographic provides an ideal market for downsizers to apartments who are, at the same time, taking advantage of capital growth in their existing homes averaging 8.74 per cent annually," he said.

"Older couples, especially, have a desire to remain in the same suburb, while younger people, who may have grown up locally or simply see Ivanhoe as very well located, are key drivers of what has recently become a very strong local apartment market."According to RP Data, apartment prices in Ivanhoe average $636,000 and houses $1.26 million, while visits per property on realestate.com for Ivanhoe are more than double the Victorian average.

Norman Street is being marketed by Expressions of Interest closing Wednesday, March 16, and is expected to fetch in excess of $5 million.