The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
LESS THAN 30 DAYS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
4 WEEKS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
SECURE YOUR SPOTDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
OtherStaff WriterWed 19 Jul 17

Asset Demand Swells As Melbourne Inner North Continues To Grow

iStock-520705986_620x380

Unprecedented growth in Melbourne's inner-north has resulted in many developers turning over assets in as quickly as six months, realising capital growth of up to 50%.

The area's growth has been, according to industry experts, driven by the heightened demand for student housing and the plot-ratio restrictions in the CBD, as well as an exceptionally increased population growth rate that Melbourne has not experienced since 2011.

“The recent census data reveals how Melbourne has emerged as the fastest-growing city in Australia, growing by 2.4%, well above the national average of 1.5% in the same period," Colliers International’s Oliver Hay said.

“The precinct in focus is, for the most part, to the south of the University of Melbourne – however, the demand has spread right through to West Melbourne and North Melbourne."

Hay, together with Colliers International’s Daniel Wolman, have facilitated several freestanding transactions including 688 Elizabeth Street in mid 2015 – one of the earliest transactions to benefit from the change in market conditions.

“It was only 18 months later, when a permit was secured for residential redevelopment, that the site was on-sold amid insatiable demand to realise a 50 per cent uplift in value,” Hay said.

“The demand we’re experiencing is indicative of the burgeoning low-rise student precinct.

“The presence of surging Chinese and Indian migration is also particularly evident, as illustrated in the census, which reveals Victoria’s 71 per cent increase in Chinese and 51 per cent increase in Indian population since 2011.

“Melbourne is streaking ahead as the premier destination for lifestyle, employment and tertiary education.” Hay said.

Similar student accommodation development motives have been observed behind the sale of other freestanding properties, including the permit-approved 100 Bouverie Street, Carlton, which sold last month for $2.8million, a 93% premium on its 2014 purchase price.

“With developers seeking more profitable projects outside the CBD grid, each property is expected to be well received by the market,” Wolman said.

“In comparison to the CBD grid, land rates in the city’s north rarely break $20,000 per square metre, creating considerable and flexible redevelopment opportunities, and consolidating the continued densification of the city’s north and its future relevance as the gateway to the CBD.”

ResidentialAustraliaMelbourneReal EstateSector
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy on the Sound of Cannon: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
5 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
Exclusive

Fortis Reveals Plans for Coveted Bowen Terrace Site

Taryn Paris
4 Min
View All >
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy on the Sound of Cannon: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
Sponsored

HCP: Real Projects, Real People, Real Returns

Partner Content
Justin Butterworth will speak on a panel at Urbanity 2025 on the Gold Coast.
Technology

Platforms Pump Up Rental Revolution: Justin Butterworth

Renee McKeown
The brains behind the foundation of Airbnb is moving in a new direction reshaping the face of the rental market…
LATEST
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy on the Sound of Cannon: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
Finance

HCP: Real Projects, Real People, Real Returns

Partner Content
5 Min
Justin Butterworth will speak on a panel at Urbanity 2025 on the Gold Coast.
Technology

Platforms Pump Up Rental Revolution: Justin Butterworth

Renee McKeown
4 Min
Singapore’s Furama Hotels reportedly picked up the Skye Suites for $68 million amidst an Australian acquisition spree.
Hotel

Sale of Sydney’s Sky Suites Year’s Biggest Hotel Deal

Renee McKeown
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/melbourne-inner-north-growth-swells-asset-demand