Strong construction activity and low unemployment rates contributed to the state being placed ahead of NSW this year, for the second time since the report’s inception. Melbourne’s population growth is another key contributing factor that has shifted the market over the past 12 months, resulting in record levels of infrastructure spending and $13.7 billion in construction work being completed in the June quarter of 2018.
With rising levels of construction and spending in the commercial sector, the state is becoming increasingly developed. The recent Urban Land Institute and PwC report, Emerging Trends in Real Estate Asia Pacific 2019, reports that Melbourne has outshone all other Australian capital cities to be named as the best prospect in the Asia Pacific region for both investment and development opportunities.
Commercial rental growth has boomed across Victoria in 2018, with yields from prime office and retail remaining high by international standards.
Although office vacancies over in 2018 were reportedly lower than previous years, there are still opportunities to be found in Melbourne, with prices currently sitting at a reasonable rate across the city. There are many options for investors to consider from East to West and across the different sectors, from office through to retail. Areas tipped for growth in 2019 include Moorabbin, Tullamarine and Ringwood.
Contact us today on 03 9654 2311 for more advice on commercial property strategy in Melbourne.