Developers move north in Melbourne
A lack of land available in Melbourne’s south-east is driving a rush towards the north, according to data from one online portal.
PermitReady.com.au lists development sites for sale across the country and has seen a boom in buyer demand for boutique projects in the northern suburbs of Preston, Coburg and Thornbury.
Over a period of six months, PermitReady data shows that 21 sites changed hands in Melbourne’s north, compared to just nine in the south-east over the same period in December; meaning the north had 133 per cent more transactions.
The research also reveals developer enquiries into these suburbs has increased by 27 per cent in the same period, with an average of 42 enquiries per property per month compared to the previous six month period which saw an average of 33 enquiries per property per month.
“Developers in these Northern suburbs are noting consumer demand for townhouse-style projects, particularly given the area’s ability to provide good amenity and broad lifestyle options,” said Permit Ready managing director Nick Materia.
“For example, Collingwood once known as a working-class neighbourhood, has been dramatically transformed into one of the most sought after suburbs in Melbourne. The proposed 56-hectare Arden precinct development in North Melbourne, indicates strong positive confidence for this part of Melbourne,” said Mr Materia.
Mr Materia also believes the increasing interest in the area is a result of close freeway and transportation links.
According to recent data from CoreLogic, Preston, one of the more popular northern suburbs, has experienced a growth of more than 5.5 per cent in apartment prices, and 9.3 per cent in house prices over the past few years.
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