Michael Spence says there is an “air of optimism” around Melbourne. He calls it “the quiet achiever” and he says it’s one of the most affordable major cities in Australia in which to rent office space.
“We haven’t had the spikes you’ve seen in Perth, in Brisbane with rentals. We’ve been slow and steady with good, moderate growth,” he says.
And Spence believes it will continue to be slow and steady. He says one reason for Melbourne’s competitiveness is its planning regime and availability of land.
“So if you look at Docklands as being a classic example of … future-proofing the city, it is geographically as large as the CBD,” Spence says. “So where cities like Sydney have got geographic constraints like the harbour and the nature of its terrain, Melbourne’s been able to be progressive.”
He has plenty of other positive things to say about Melbourne and why Walker Corp has its biggest book of work placed in Victoria.
“Victoria’s got a very competitive business environment,” he says. “If you look at the GFC, Victoria led the national recovery with over 115,500 new jobs during 2009 and 2010. And that’s about 25,000 more than any other state.”
Spence also points to government investment in infrastructure in Victoria, which has quadrupled over the past decade.
“It’s the events capital of Australia,” he says, noting the State Government’s investment in the convention centre and the redevelopment of Melbourne Park Tennis Centre.
Walker Corp has a strong footprint in Melbourne concentrating on two sectors.
“We’re bullish on commercial and we’re optimistic on residential,” Spence says.
Essentially, he argues, Melbourne is meeting the demand of its inhabitants. As the population expands, land releases for the residential sector have been substantial.
Walker Corp’s residential development at Main Drive Kew has seen value growth of about 60 percent since it began in 2008, and the average house price is now $2.3 million. Spence says the 28ha site offers the opportunity to roll out further stages down the track.
Further to this, he says Walker Corp will look at both medium density and master planned community opportunities in Melbourne, and has its eye on some promising projects.
Source: Property Council of Australia
