Victoria is the second most populace state in Australia with 4.5 million people.

Melbourne is a cultured, well regarded city, nominated in 1993 as the "World Most Liveable City".

The major commercial office market is centered around the Melbourne central activity district which contains over 3.2 million sqm of modern or refurbished office space and a significant retail and residential usage more akin to a European style of urban development.

The Melbourne office market suffered major declines in value during the early 1990s - declines in the order of 50% while the office vacancy rate soared to over 25%. More recently local and international investors have been picking up property at below replacement value or on historically high yields.

Industrial activity is predominantly located in the eastern suburbs of Melbourne. Rentals here are around $75/sqm for good quality warehouses with subsidiary office.

The Port area of Melbourne, formerly a heavy industry location is progressively being rehabilitated to warehousing and other usages.

Melbourne is regarded as the shopping & fashion capital of Australia with many local clothing labels. Local strip and neighbourhood shopping plays an important role in the retail property market in Melbourne, to a greater degree than any other Australian city, accounting for over 25% of the total retail area in Victoria. There is a very active market in the purchase and leasing of strips of shops and local malls in the suburbs.

At the other end of the market, major sub-regional retail centres account for around 35% of total retail area, with over 40 separate retail centres available, while there are over 80 neighbourhood shopping centres.

The hotel & leisure in Victoria is dominated by inner city hotels for domestic and international travellers although Sydney and Queensland are the main destinations for international tourists.

Areas outside the Melbourne inner city are not high on travellers destination lists and cater mainly to the local business travel market in motel style accommodation.

Melbourne has the second highest median residential house price after Sydney at over $255,000.

Back to: