INVESTMENT REP ORT WEST MELB O URNE 1
West Melbourne— Suburb Overview
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West Melbourne is located on the city’s western boundary. This flourishing suburb boasts easy access to all the delights of the CBD, but is removed from the bustle of the city. West Melbourne is well serviced by public transport with North Melbourne and Flagstaff train stations and the 57 tram all within easy walking distance. The suburb has a growing population with strong demand from young white-collar workers as well as empty nesters from nearby North Melbourne and Kensington.
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Ikebana is positioned on Melbourne’s CBD, per the excitement of this from a place of tranquil
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n the fringe of fectly placed to enjoy international city lity.
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I only build in areas that ensure substantial returns. West Melbourne is set to boom with its premium lifestyle options and inner-city location. With four developments in the area already completed – West Melbourne will only get better and better. Tim Gurner, GURNERTM.
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01 Alessi 485 Spencer Street, West Melbourne Sold out in 7 weeks @ $9,350 average per sq/m
02 Santorini 135 Roden Street, West Melbourne Sold out in 9 weeks @ $9,432 average per sq/m
03 Tivoli 141 Roden Street, West Melbourne Sold out in 6 weeks @ $9,435 average per sq/m
04 Mighty Apollo 103 Hawke Street, West Melbourne Sold out in 4 weeks @ $9,421 average per sq/m
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Top 10 reasons to invest in West Melbourne
West Melbourne is a dynamic mixed-use precinct. With its growing population, flourishing cultural scene and perfect location, this inner city pocket represents an incredible investment opportunity. #1 RENTAL VACANCY RATE OF ONLY 1.9%
#3 POPULATION GROWTH
Vacancy rates in West Melbourne are ONLY 1.9%. This is substantially LOWER THAN THE MELBOURNE CBD AT 4.4% – a product of higher levels of demand and lower supply levels of new apartments.
Melbourne’s population is predicted to GROW TO 7.7 MILLION PEOPLE BY 2051. This is an increase of 3.4 MILLION from
SOURCE www.sqmresearch.com.au
today's 4.1 million.
Approximately 1.6 million new dwellings will be needed in the city by 2051. SOURCE Plan Melbourne
#2 AMAZING RENTAL YIELDS AND INCREASING RENTS
With indicative rental yields of 4.9% and rents that are increasing year on year, West Melbourne properties consistently deliver high returns on investment. The median weekly rental for apartments in West Melbourne is $560.
4.9% SOURCE SQM Research May 2013
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19.47% #4 MEDIAN HOUSE PRICE
Over the past year a lack of supply in West Melbourne has placed upward pressure on property prices resulting in strong and SUSTAINED ANNUAL CAPITAL GROWTH OF 19.47%. SOURCE yourinvestmentpropertymag.com.au
#5 ACCESSIBILITY
#7 EDUCATION
West Melbourne is PERFECTLY LOCATED for residents seeking the lifestyle benefits of the CBD. It also boasts
Several PRESTIGIOUS UNIVERSITIES are on West Melbourne’s doorstep, including MELBOURNE UNIVERSITY, with an attendance of 53,000 students and RMIT, with 37,000 students.
EASY ACCESS TO MELBOURNE’S FREEWAY NETWORK at Dynon Road and
Wurundjeri Way.
SOURCE http://melbourne.geografia.com.au/
To Me lb o u r ne D o c k lands
#9 AFFORDABILITY
To Me lb o u r ne CBD and Q u e e n Vic to r ia Marke t
West Melbourne is EXTREMELY ATTRACTIVE for inner city buyers who are seeking value, with median prices a fraction of other inner city suburbs. With AFFORDABLE PRICES, capital growth is expected to exceed that of other higher priced inner city suburbs. NORTH MELBOURNE
$730,000
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$895,000
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East Melbourne
$1,925,000
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Port Melbourne
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$890,000
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West Melbourne
#6 GENTRIFICATION
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Albert Park
DOCKLANDS VICTORIA HARBOUR
$1,260,000 SOUTHERN CROSS STATION
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#10 DEMOGRAPHICS YARR
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60% OF THE POPULATION are renters, HWAY
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West Melbourne is experiencing rapid gentrification. The fastest rate of growth in house types is single people and couples without children, the ideal demographic for strong and sustained growth for apartment living. Source .id the population experts
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$854,000
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In 2012 the City of Melbourne’s Gross Local Product was $86.7 BILLION. The city accounts for 27% OF VICTORIA’S ECONOMY, and 6% OF THE AUSTRALIAN ECONOMY.
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#8 ECONOMIC GROWTH
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and over 70% of the population are aged between 19 and 40 — the perfect renter demographic.
60%
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Median House Prices
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West Melbourne
Below are 4 of the top median house price suburbs in close proximity to the Melbourne CBD.
NORTH MELBOURNE STATION
$730,000
WEST MELBOURNE
EAST MELBOURNE East Melbourne is home to several major cathedrals, hospitals and expansive green spaces. It has many glamorous houses and historic residences.
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Port Melbourne underwent substantial gentrification in the 1990s, when previous industrial land was developed for housing. It is now a highly sought after location, with exemplary cafés, shopping and lifestyle options.
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Albert Park is home to quality shops, restaurants, bookstores and cafés. It is a thriving suburb for singles, young couples and families alike.
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Fitzroy has a distinct personality defined by its diverse population. It has undergone significant growth and renewal, and is a buzzing area close to the CBD.
DOCKLANDS
The above indicates that there is strong capital growth potential for West Melbourne as a suburb on the fringe of the Melbourne CBD, experiencing renewal. DOCKLANDS PARK
Port Melbourne IN
$895,000
Albert Park
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$1,260,000
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$890,000 CARLTON GARDENS
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East Melbourne
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$1,925,000
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Key Figures — West Melbourne
West Melbourne is a dynamic area, containing a mixture of Victorian single and double storey terraces and converted warehouses. It has an ideal rental demographic, with a high proportion of singles and young professional couples.
4.1 MILLION 7.7 MILLION CURRENT POPULATION
PROJECTED POPULATION IN 2051
There are predictions of substantial population growth for the City of Melbourne, with estimates that the population will increase by 3.4 million by 2050. Source: Plan Melbourne
60% RENTAL POTENTIAL
Almost 60% OF THE POPULATION in West Melbourne chooses to rent. This, combined with low vacancy rates, is forecast to drive rental rates higher over the next five years.
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19.47% MEDIAN PRICE CHANGE – 1 YEAR
Over the past year a lack of supply has placed upward pressure on property prices resulting in strong and SUSTAINED ANNUAL CAPITAL GROWTH OF 19.47%. SOURCE yourinvestmentpropertymag.com.au
RENTAL VACANCY RATE
MEDIAN AGE
1.9%
Over 50% OF THE POPULATION OF WEST MELBOURNE IS AGED BETWEEN 20 AND 39. This is the prime age for residents to rent apartments.
The rental vacancy rate in WEST MELBOURNE IS JUST 1.9%, which is just a fraction of the Melbourne average at 4.4%. Source: SGM Research, May 2013. SOURCE SQM Research, May 2013
16.6% 20-24 years 36.3% 25-34 years 17.0% 35-44 years 9.3% 45-54 years 5.5% 55-64 years 15.3% Other SOURCE SQM Research, May 2013
4.94%
INDICATIVE GROSS RENTAL YIELD
SOURCE yourinvestmentpropertymag.com.au/top-suburbs/vic-3003-west-melbourne.aspx
29% Young people aged 12-25 years 31% Bachelor degree or higher 21% Weekly income > $,1000 34% Young people aged 25-34 years
WEEKLY FAMILY INCOME $2390 $2000
SOURCE melbourne.vic.gov.au, West Melbourne small area economic and demographic profile, December 2009
$1000
RELATIONSHIPS 1991
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2011
2016
West Melbourne Melbourne SOURCE SQM Research, May 2013
DEMOGRAPHIC PROFILE The population of West Melbourne is growing quickly, and is forecast to continue moderate population growth into the future. The suburb has a large percentage of people aged between 25-34 YEARS – this demographic comprises 34% OF ITS POPULATION – an ideal rental demographic.
25% 27% 31% REG ISTERED MARRIAG E
D EFACTO MARRIAG E
NOT MARRIED
APPROXIMATELY 65% of the West Melbourne population IS NOT IN A RELATIONSHIP. This demographic forms
the backbone of the apartment rental market. The relationship demographic spread will ensure ongoing strong demand from a rental and resale perspective as residents move through the cycle. APARTMENTS COMPRISE 65% OF THE DWELLINGS in the area are apartments, meaning that the style of apartments is the norm in the area. SOURCE Residex 2013 West Melbourne suburb report
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Melbourne is to become the biggest city, w population of 8 million with SOURCE Herald Sun (http://www.theage.com.au/victoria/population-record-rise-in-city-dwellers-melbourne-tops-nations-growth-rate-20140406-3673v.html)
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on track e nation’s with a f about hin 40 years. 15
Top 10 reasons to invest in Ikebana #1 RESORT-STYLE RESIDENTS AMENITY
#3 EXPERIENCED DEVELOPER
IKEBANA PRIVATE CLUB within the
GURNER™ is one of AUSTRALIA’S FASTEST residences has been inspired by the luxury GROWING PRIVATE DEVELOPERS with over hotels of Japan. A beautifully landscaped $1 billion in residential projects currently rooftop garden will surround two hot spas, under development. GURNER™ has a keen a teppanyaki grill, deck and lawn areas as eye for emerging areas and developing well as intimate dining and entertainment projects in suburbs that offer strong and spaces. sustained capital growth for its clients. #2 BOUTIQUE SIZED-BUILDINGS
#4 ELENBERG FRASER ARCHITECTS
Ikebana comprises four separate boutique sized buildings, each with individual security access. Smaller ‘bitesized’ buildings are most attractive to the owner occupier market.
Elenberg Fraser is the most prolific architectural firm in the Melbourne residential space with over $1 billion of constructed work, another $1 billion under construction and further $1 billion in planning or development. Elenberg Fraser is renowned for designing iconic landmarks that will define this era in architecture.
‘Hand torn’ concrete elements create a soft yet distinctive façade across three buildings, all linked by peaceful zen gardens and beautifully landscaped courtyards. Callum Fraser, Architect
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Illura, West Melbourne is an ecologic throwback for West Melbourne. The drought resistant grasslands grown on the side of the building have been extinct in this area since pre-colonisation over 100 years ago, and have been reseeded, propagated and brought back by fenestration for the growing façades.
#5 STUNNING ARCHITECTURE
#7 EXQUISITE FINISHES
Meticulous attention to detail by GURNERTM and Elenberg Fraser has resulted in a façade that speaks to the surrounds, is unique and will stand the test of time.
There are three stunning colour schemes to choose from – the light, the dark and the Ikebana scheme – all featuring a subtle layering of materials to create luminous, serene residences.
#6 INNOVATIVE LAYOUTS
#8 VIEWS
Ikebana comprises a selection of intelligent layouts with designs that offer multifunctional elements and flexible configurations such as studies that can double as bedrooms. Kitchens offer ample storage and incorporate large island benches that double as dining spaces.
Ikebana is located in an elevated position to take advantage of breathtaking views of the CBD, Docklands, Flagstaff Gardens and northern streetscapes.
#9 LOCATION
#10 TRANSPORT
Positioned on the edge of the city, Ikebana is close to Melbourne’s business, cultural and entertainment precincts. The city’s best cafés, restaurants and bars are just 300m away, with North Melbourne’s eclectic offering also within easy reach.
Ikebana offers easy access to trams, buses and trains, with Flagstaff Station just a short walk across the Flagstaff Gardens. Citylink (and eventually the East West Link freeway) is five minutes drive from Ikebana, linking residents to the suburbs, beaches and countryside of Victoria. Melbourne’s Tullamarine Airport, the second busiest airport in Australia, is just 20 minutes drive from Ikebana. 17
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DISCLAIMER Although GURNER™ has prepared this document with care and believes the forecasts and estimates within it to be reasonable, it does not accept responsibility for any action taken in reliance on the information contained herein. Prospective purchasers and investors should make their own enquiries and take appropriate accounting, legal, taxation or investment advice regarding their own particular circumstances before making any decision concerning Ikebana.
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