The current ‘city road wedge’ in South Melbourne (convention centre precinct) will undergo a transformation. There will be an integrated development consisting of retail mall, residential buildings and 1 international hotel and they will be built over a 5-year period.

A tram stop along Whiteman Street beside this development has been proposed to the council be built to provide better accessibility to this new development. Approval will be made known at a later stage.

The first of 3 residential buildings to be released is a 39-storey building right at the corner of city road and cecil street.

Key highlights are summarized below:

• Rare integrated mixed-use development (3 levels of retail mall and shops, 3 residential buildings and 1 International Hotel)
• Iconic development in the Convention Centre Precinct
• Big ratios of units with carparks
• Less than 1km to Melbourne CBD
• Less than 50m to Melbourne Convention and Exhibition Centre
• Proposed tram stop to the council along Whiteman road for future residents
• Pre-release at prices below current market rate (*based on comparison with closest new project launched)
• South Melbourne – An international address and a major activity center under the metropolitan strategy, Melbourne 2030
• Proven capital growth and great rental yield area for investors (Data from residex Dec 09 issue showed 8.33% p.a. growth for capital growth and 5.14% p.a. for rental yield growth for the last 10 years)

Prices start from:

• 1-bedroom apartment (from $420,000* with 1 carpark)
• 2-bedroom apartment (from $550,000* with 1 carpark)
• Off-the-plan purchase (only 10% deposit required)
• Settlement in 2013

*Pre-release prices, prices are subject to change without notification from vendor

Rental Potential

Rental yield is estimated to be in the region of 5% or more currently. The vacancy rate in inner city suburbs is below 1% (3% to be considered market balance). According to the population census by City of Port Philip, it is projected that the number of residents will increase to 96,110 with an increase of 2,125 in the year 2009. Howver the number of approved dwellings between 2008-2009 is 705 and that will take between 18-24 months to be completed. With a family size of 2.1 (latest statistics by ABS on household size) there’s still a shortage of accommodation within this area. That will pressure on rentals and cause the rentals to rise.

Capital growth potential

Investors will be pleased to know that South Melbourne has been earmarked as a major activity centre to be developed under the Melbourne 2030 Plan. What it means is that the area will be developed over the next two decade as focal points for services with increased residential densities, employment opportunities as well as cultural and community services.
As businesses move and relocate to the already thriving Clarendon street spine filled with commercial and retail outlets, South Melbourne’s transportation network will be enhanced along with conservation of heritage listed sites (which limits the supply of new residential properties) to give this suburb a unique character and identity. Along with parklands and good schools, it is a desirable place to live for both investors as well as owner-occupiers.
Highlights

•    Completion expected in 2013 with maximum stamp duty savings for off-the-plan purchasers now.
•    Freehold and available to all residents as well as non-residents
•    Loan available up to 80% of the value of the property (AUD loan)
•    Foreign currency financing options available (subject to lending criteria from Australian banks)
•    Most competitive property management fee in Australia (62% off retail property management fees)
•    Early purchasers guaranteed capital growth (higher-priced apartments to be released in later stages)

Feel free to drop me an email if you have any queries.
Have a good weekend ahead!