Exploring the evolution and potential of West Melbourne
Article | 4min read
by JONES REAL ESTATE on October 14, 2022
At Jones Real Estate, we are often asked by our clients where the next up-and-coming locations are for commercial property across Victoria.
While every business and investor have their own unique set of office requirements, there are certain regions that emerge every so often that have the fundamentals to cater to essentially everyone’s needs.
West Melbourne is set to become a once-in-a-generation area of opportunity that we believe will position it as one of Victoria’s most sought-after development regions over the next five years.
This is due to several contributing factors, such as the recent planning amendments for the suburb, its proximity to the CBD, and vast connectivity to key arterials and planned infrastructure projects.
A brief history of West Melbourne
Throughout the 1900s, West Melbourne established itself as one of the state’s most formidable industrial and logistics areas, spurred by the construction of landmark infrastructure including the Port of Melbourne, Dynon Railway Yards and the iconic Melbourne Markets.
Located adjacent to the CBD, West Melbourne occupies an important parcel of inner- Melbourne that stretches from La Trobe Street in its south-eastern corner to the meeting point of the Maribyrnong and Yarra Rivers at its western boundary.
Since its humble working-class beginnings, West Melbourne’s gradual gentrification has maintained a low profile, however the State Government’s decision to endorse the West Melbourne Structure Plan could signify a watershed moment for considered growth in the suburb.
Unpacking West Melbourne’s development potential
The endorsement of the West Melbourne Structure Plan, coupled with the recent C385 planning amendment in May, are essential ingredients that will inject a host of new community amenity into the area, as well as unlock new development opportunities across the region.
This is particularly exciting for people living and working in West Melbourne, as plans to revitalise the region include upgrades to existing public transport and bike paths, the creation of a new High Street precinct, extensive greening works, and the integration of over 10,000 square metres of new open space.
We believe this considered revitalisation will lead to West Melbourne becoming the city’s next big creative, corporate and residential hub – much like Cremorne and Southbank have in recent years.
Excellent access to every day amenity including Southern Cross and Flagstaff Stations, as well as key arterials like CityLink and the Tullamarine Freeway, are adding to its rapidly growing popularity among office hunters and investors alike, while West Melbourne’s strategic positioning next to landmark projects including the planned Arden Street precinct and West Gate Tunnel are pouring more fuel on this fire.
Introducing Dalston House
A great example underscoring the diversified development potential for West Melbourne is our development-approved 405-421 Spencer Street listing – Dalston House.
This striking 20-level planned tower conceived by Plus Architecture will boast sweeping panoramic views across the CBD skyline and Port Phillip Bay, and occupies a significant 1,683 square metre corner-site atop the former Dalston Bakery.
Thanks to its Special Use Zoning, Dalston House is a brilliant investment opportunity with broad build potential.
While a commercial development for this site makes sense, other emerging markets that are gaining momentum such as the build-to-rent sector, also present as a considered development option suited to the area and Melbourne’s growing need for affordable housing.
Our recent listings in West Melbourne
Earlier this year, our experienced sales team represented on the sale of the recently completed 99-room serviced apartment building at 221 Rosslyn Street, on behalf of our associates Victor Smorgon Group, Trenerry Property Group and the Kanat family.
Located within the consortiums $345 million West End mixed-use development, this 4.5 star accommodation offering is another great example of diversified commercial real estate assets in the area that are driving its popularity in the Melbourne market.
The campaign for the 4,616 square metre complex attracted solid attention from a mix of keen local and international prospects, thanks to factors like its considered on-site amenity including 27 basement carparks and convenient positioning atop Foodworks and other specialty retail – which helped it fetch in the vicinity of $35 million in May.
More broadly, the Jones Real Estate team has represented on over $100 million in property listings in West Melbourne over the past 12 months.
If you would like to learn more about our forecast for the West Melbourne market, our Dalston House listing, or would like to discuss a separate commercial property opportunity in the area, please reach out to us at firstname.lastname@example.org