As the second-most populated city in Australia with a population of at least 4.8 million people, it’s unsurprising that to many, Melbourne is regarded as a place of high density. For some, this is a daunting idea as areas get more crowded and more competition arises within certain sectors. However, that’s the wrong way to view the situation. Instead, Melbourne’s high density should be viewed as a new, yet opportunistic venture for business owners.
What’s going on?
In a recent report, CBRE recorded that developers are starting to favour boutique-style businesses as of late. This is because of high-density buildings and new apartment blocks suffering a fall of a quarter in sales over recent years. A downtrend in sales like this leads to a significant subsiding in the number of new apartments being built; indeed, JLL has slashed its prediction of apartment completions this year by over 10% – from 6,250 to just 5,500.
What does this mean?
As previously mentioned, this means that many more businesses are favouring boutique type residential and business buildings – this is positive news! Not only does this entice selective customers that have perhaps previously abandoned the market due to a lack of personalised focus, but it is also demonstrative of the potential for a new type of business to work. This is also alluring to people wishing to start a business, as vast amounts of money and planning are no longer necessities.
A newfound flurry in low and medium density properties, as well as boutique businesses, is creating a strong forecast of growth for Melbourne in the future. Jozef Dickinson, International Director of Colliers, says that there is a “strong rental growth proposition” which is “attracting investors back in”. So, while Melbourne is in the midst of a property slump at the moment, it will end soon.
For Melbourne companies looking for a caretaker package to help look after their businesses in this era of prospective business growth, look no further than MYBOS! As a building management, facility management and developer management system, MYBOS offers features and solutions for many people – whether it be owners, STRATA managers or tenants. Try it for yourself today.
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