City of Melbourne Releases 20-Year Vision Blueprint
New suburbs to the west and to the north of the Hoddle Grid will emerge as part of a 20-year blueprint released by the City of Melbourne.

Major residential development will occur in that time through regeneration and infill development of the Macaulay and Arden precincts, between North Melbourne and Kensington, as well as Fishermans Bend and Lorimer to the south of the Yarra.

The Council’s Municipal Planning Strategy and City Spatial Plan forecasts population growth of 79%, or 144,000, many of which will be accommodated within the CBD and redeveloped industrial areas.

West Melbourne – which alone will require 6,700 new homes – and an area between North Melbourne and Carlton dubbed “City North” will continue to see old industrial sites converted to apartments, retail and offices. More open space is set for E-Gate, Dynon and the Maribyrnong waterfront and industrial areas that support the “knowledge economy”. Arden and Macaulay will see mid-rise residential and office buildings, respectively forecast to be developed to 15,000 residents and 34,000 workers, and 10,000 residents and 9,500 jobs.

The City of Melbourne is expecting just over 21,000 people to be living in Fishermans Bend by 2040, and ultimately have 80,000 residents and office space for 80,000 workers.

The plan also includes provisions for a new tram route running from Fishermans Bend through Spencer Street, where there would be a new shopping strip, to West Melbourne.

The number of residents living in the Hoddle Grid is projected to double to about 100,000 by 2040, and the number of workers will grow from 211,000 to 310,000. The City of Melbourne is hoping for 1.4 million people to be working, visiting and moving around the city on any given day by 2040, compared with 972,000 pre-COVID.

Southbank and Docklands will receive parks and public space, while Moonee Ponds Creek will be replanted to create a green corridor from the Yarra River to Royal Park, and the Maribyrnong River will be revitalised.

The Council will also be pushing ahead with plans for fewer cars in the city, potentially introducing gutterless roads along the “little” streets and laneways of the CBD, such as Flinders Lane, Little Collins and Little Bourke streets to encourage more use by pedestrians and bikes. About 60% of street space in the Hoddle Grid in allocated to vehicles, which make for 1/3 of all trips.

The Council is also aiming for net zero emissions by 2030 and net zero waste by 2040.

The strategy will be released for public exhibition and consultation later in the year.

Inner North-West on the Rise
The inner north-west is attracting buyers across the market, from investors and owner-occupiers to developers in anticipation of rapid population growth in the coming years.

Among the latest deals, Fitzroys’ Ervin Niyaz and Chris Kombi sold the clinic building at 318 Ascot Vale Road, Moonee Ponds for $1,602,500, well above reserve, to a local medical practitioner amid surging demand for health services.

The new purchaser is an ear, nose and throat specialist who will occupy the premises. They are moving in to the heart of the inner north-west from Essendon, where they had been for many years.

The purchaser won out from a field of more than 50 potential buyers that included GPs, specialists, allied health practitioners, investors and developers.

“The convenient location, main road corner exposure and on-site car parking were drawcards, while the population growth and development activity throughout the area were also major factors in the enquiry,” Niyaz said.

The population of City of Moonee Valley is forecast to increase from 122,871 people in 2016 to 166,143 in 2041 according to Remplan, largely driven by the development activity in close-by Moonee Ponds, where the population is forecast to more than double from 13,911 in 2016 to 28,135 people by 2041.

Niyaz and Kombi also sold 291 Maribyrnong Road nearby in Ascot Vale for $3 million on a very sharp initial yield of 1.55% to a landbanking developer based in the area.

More than 65 enquiries were generated during the campaign, leading to a highly competitive auction with 5 bidders battling it out for the property. Enquiries came from local occupiers - including for food, fitness and office uses - and investors seeking upside, value-add, versatility and future development upside, Niyaz said.

“The range of potential buyers throughout the campaign is testament to property’s positioning. It’s in a great spot - right on the tram line, just metres from the Maribyrnong River and parklands, and close to Highpoint and the Ascot Vale and Moonee Ponds lifestyle, shopping and hospitality strips,” Niyaz said.

“The buyer has set their sights on the long-term potential of this property. Melbourne’s inner-west is on the rise and well-connected sites close to lifestyle and hospitality amenity are highly sought-after at the moment.”

Melbourne CBD Sales Activity Ramping Up
Investors continue to show their faith in Melbourne CBD property.

The London & American Supply Stores building at 483-485 Elizabeth Street sold for $12.025 million to an investor on a 1.63% yield. The owner-occupier vendor had owned the 711sqm Art Deco building for 30 years.

At 365 Lonsdale Street, an offshore buyer made their first Melbourne CBD purchase with the $10 million acquisition of a mostly vacant 3-storey building close to Melbourne Central and Emporium.

A Korean supermarket on the ground floor is currently the only tenant of the 770sqm building, which is on a 415sqm site.

Fitzroys has just closed the first round of Expressions of Interest for 97 Elizabeth Street, near the intersection of Collins Street. The 458sqm property is leased to Betty’s Burgers, part of iconic Retail Zoo group - which is also behind Boost Juice and Salsa’s Fresh Mex – and has a secure 10+10-year lease that returns $438,035pa plus outgoings and GST.