OUTLOOK OCTOBER 2013

A WALKABILITY & ACCESSIBILITY

VICTORIA HARBOUR Walking distance to a diversity of lifestyle amenity
and retail, with a selection of nearby cafes &
restaurants, boutique shops & supermarkets / Pg 02

A CONTEXT ON BUSINESS, CULTURE, LIFESTYLE AND RESIDENTIAL B CONNECTIVITY

Five minute tram ride to the Melbourne CBD, and
well serviced by pedestrian, cycling and public
transport links/ Pg 02
C INVESTMENT & INFRASTRUCTURE
$4.5 billion in investment into Victoria Harbour by
2021 to create a vibrant mix of residential, retail &
commercial spaces / Pg 04
Victoria Harbour showcases a D EMPLOYMENT GROWTH
By 2031, Victoria Harbour will be within 5km of

sophisticated blend of residential, nearly 700,000 employment opportunities across

the City of Melbourne / Pg 05

commercial and leisure destinations beside E HIGH INCOME DEMOGRAPHIC

Docklands residents registered a median personal
income that was 79 per cent higher than the

a panoramic waterfront setting, all within Greater Melbourne benchmark/ Pg 06

F PRICE GROWTH
walking distance of the Melbourne CBD. Docklands has shown an average median sale price
growth of 9.1 per cent per annum over the five
years to June 2013 / Pg 07

57 PER CENT 2.5 KILOMETRES

GROWTH IN OF WATERFRONTAGE
EMPLOYMENT AND NORTH FACING
BY 2025 IN PROMENADES
DOCKLANDS

NAB BUILDING WATERFRONT MARINA

150+ 3.7HA OPEN

RESTAURANTS, 1 POP 2 INF 3 EMP SPACE IN
CAFES AND DOCKLANDS
BARS IN
DOCKLANDS
LOCATION
Victoria Harbour accommodates
all three of the Urbis economics and
research fundamentals that make a
sustainable suburb Population,
Infrastructure and Employment.

CAFE IN DOCKLANDS

DOCKLANDS
HAS A RENTAL
PREMIUM UP
TO 25 PER
CENT OVER
MELBOURNES
INNER CITY

APARTMENT INTERIOR OPEN SPACE REVITALISATION

 WALKABILITY &
ACCESSIBILITY
Victoria Harbour, Melbourne
MELBOURNE AIRPORT 20MIN
SOUTHBANK

5
2 6
17 3 MELBOURNE CBD 7
18 5MINS BY TRAM
8 9

24
1 23 19
VICTORIA
DOCKLANDS HARBOUR
4
DOCKLANDS

150 + CAFES,
RESTAURANTS 12
& BARS

100+ RETAILERS
13
100+ EVENTS
ANNUALLY
14
3.7ha OPEN SACE

17 16 15

Victoria Harbour is set
to offer a sophisticated
blend of residential,
commercial and leisure
destinations, all within
walking distance of the
Melbourne CBD.
With a panoramic harbour setting,
Victoria Harbour represents a unique
waterfront extension of the cosmopolitan
Melbourne CBD. Victoria Harbour forms
the heart of the Docklands precinct,
currently known for the iconic Etihad
Stadium and Southern Cross Station,
and benefiting from significant public
and private investment. Residential
communities and commercial hubs are
serviced by a diversity of lifestyle amenity
and retail, with a selection of nearby
cafes and restaurants, boutique shops
and supermarkets.
Active public spaces and 2.5 kilometres
of waterfrontage and north facing
promenades enhance the waterfront
setting in Victoria Harbour. Only minutes
from the centre of the CBD, Victoria
Harbour is linked by the Collins Street
tram and well serviced by pedestrian,
cycling and public transport links.
These fundamentals, alongside plans
for ongoing master planned renewal,
have seen Victoria Harbour become
an increasingly prominent inner city
location for urban living.

2 URBIS
02 URBISVICTORIA
VICTORIAHARBOUR
HARBOUROUTLOOK
OUTLOOK
URBIS.COM.AU
 ST KILDA

PORT PHILLIP BAY

20

10 11

VICTORIA HARBOUR

28 CAFES 1 GYM PORT MELBOURNE

SAFEWAY &
11 RESTAURANTS CONVENIENCE STORE

8 HEALTH & THE HARBOUR FAMILY

BEAUTY RETAILERS & CHILDRENS CENTRE

21 4 BANKS 2 TRAM STOPS

25
22

YARRA RIVER

26

1 Queen Victoria Market ( 5min) 11 Bay Street Dining Precinct

Entertainment, Shopping & Dining

2 Federation Square 12 Central Pier 19 Docklands Park

& Green Space
Recreation

3 Bourke Street Mall 13 NewQuay 20 Albert Park

4 Etihad Stadium 14 Waterfront City Restaurant Dock Square Park
21
5 Southbank Dining Precinct & Entertainment Precinct
22 Docklands Library
6 Crown Entertainment Complex 15 Harbour Town Shopping Centre & Community Centre
7 Melbourne Conference 16 Medibank Icehouse
& Exhibition Centre 23 Bourke Street Pedestrian Bridge
Infrastructure

17 Costco
8 Hilton Hotel 24 Southern Cross Station
Education

9 DFO South Wharf 17 University of Melbourne (10 min) 25 Westgate Freeway

10 South Melbourne Market 18 RMIT University (5 min) 26 CityLink

URBIS VICTORIA HARBOUR OUTLOOK 03

URBIS.COM.AU
INVESTMENT &
INFRASTRUCTURE
DOCKLANDS INVESTMENT & URBAN RENEWAL

$8.8 billion Docklands is one of Australias largest

urban renewal projects and represents a
Infrastructure Recently significant economic boost to Melbourne
Completed or and Victoria. Melbourne Docklands is
Under Construction a 190 hectare inner city development
connecting the western edge of the
$17.5 billion Melbourne CBD to the harbour.
Total Investment After over a decade of consistent growth,
Docklands has transformed into a
to 2025
Source: Places Victoria
modern residential, commercial and visitor
destination, which has attracted a total of
$8.8 billion in private sector investment
since project inception in 2000. Upon
completion, Docklands is expected to
have attracted in excess of $17.5 billion
of private investment and be home to
an estimated 20,000 residents, 60,000
workers, and millions of visitors annually.

VICTORIA HARBOUR - MASTER PLANNED DEVELOPMENT

$4.5 billion in investment by 2021

Source: Lend Lease

As a centrepiece of the Melbourne
Docklands regeneration, Victoria
Harbour brings together a vibrant mix
of residential, retail and commercial
spaces. Through collaboration between
Places Victoria, City of Melbourne
and Lend Lease, Victoria Harbour is
emerging as an integrated precinct,
including inner city living, commercial
office buildings, community facilities
and currently over 75 retail options.
Master planned communities such as VICTORIA HARBOUR BY 2021
Victoria Harbour have been known
25,000 Workers
to generate structural uplift, with
5,000 Residents
the benefits of the master planned
8,000m2 of Community Facilities
community impacting the wider
Harbour Family and Childrens
location. This is the result of an increase
Centre
in the desirability of a precinct, and
Water Plaza promenade and marina
improvements to the lifestyle quality of
berths
its residents and community, following
30% of precinct as Open Space
a period of ongoing investment. These and Parks, including Victoria Green
factors lead to increased levels of and Docklands Park
demand, typically promoting sustained
capital value growth over the long term.

TRANSPORT INFRASTRUCTURE
Collins Street Tram and City
Circle Tram
Victoria Harbour tram stop and
tram infrastructure extension -
Operational mid 2014
Bourke Street Pedestrian Bridge
Docklands Library and Webb Bridge provide direct Etihad Stadium
& Community Centre access to the CBD & South Wharf $460 MILLION /
$13 MILLION / Southern Cross Station
53,300 PERSON CAPACITY
OPENING APRIL 2014 World-class sports and entertainment venue
Integrated network of cycling within walking distance to Victoria Harbour
A new civic hub, with a state-of-the-art library paths and walkways
and multi-purpose community facilities

04 URBIS VICTORIA HARBOUR OUTLOOK

URBIS.COM.AU
By 2031, Victoria Harbour will EMPLOYMENT
be within 5km of nearly 700,000
employment opportunities
NODES
MELBOURNE CBD EMPLOYMENT NODES
Victoria Harbour has a prime location With the Melbourne CBD at its core, 461,168
in Melbournes growing commercial the City of Melbourne is forecast to see 2011 EMPLOYMENT
centre, within walking distance to a 51 per cent growth in employment
the heart of the Melbourne CBD. by 2031, growing to close to 700,000 699,378
The Melbourne CBD is the leading employment opportunities and offering 2031 FORECAST EMPLOYMENT
employment centre in Victoria and the a wealth of employment opportunities
largest employment hub for Victoria only minutes away from Victoria 238,210
Harbours working population. Harbour. NEW JOBS GENERATED
Source: Melbourne City Council, ABS

DOCKLANDS
57 per cent growth in 531,372 m2 38,000
CURRENT OFFICE SPACE
employment by 2025, 2013 EMPLOYMENT
100,302 m2
with the majority of UNDER CONSTRUCTION 60,000
employment concentrated 628,000 m2 2031 FORECAST EMPLOYMENT
in Victoria Harbour PROPOSED
Source: Places Victoria

Source: Melbourne City Council

VICTORIA HARBOUR
Victoria Harbour has emerged as a
thriving employment node, growing at
a rapid rate as many leading companies
see the value of positioning their
company in this key location.
As a natural extension of the Melbourne
CBD, the ongoing growth in this
successful white collar business precinct
has seen the establishment of many
KEY INDUSTRIES
state-of-the-art buildings, with Victoria
Harbour currently accounting for FINANCE
300,000 square metres of office space RETAIL
and boasting the highest concentration
of Green Star rated buildings in ENGINEERING
Australia. As new high profile firms are CONSTRUCTION
attracted to this location they create a
TELECOMMUNICATION
significant catalyst for the region, with
their workforces forming a key driver TECHNOLOGY
for the local residential market.

MAJOR EMPLOYERS
IN VICTORIA HARBOUR
ANZ
NATIONAL
AUSTRALIA BANK
LEND LEASE
The Gauge Lend Lease
MYER
AURECON
ERICSSON
FUJITSU

818 Bourke Street Ericsson NAB Head Office

URBIS VICTORIA HARBOUR OUTLOOK 05
URBIS.COM.AU
POPULATION & Docklands benefits from strong
population growth and a high
DEMOGRAPHICS income demographic

POPULATION GROWTH
DOCKLANDS POPULATION GROWTH
Between 2006 and 2011, the Docklands-Southbank Statistical
Local Area (SLA) registered an increase of around 726 new
50,000
residents per annum. When the Docklands-Southbank SLA

43,768
45,000
average rate of 1.9 persons per household is applied, the

39,716
40,000

ESTIMATED RESIDENT POPULATION

34,887
location required approximately 382 new dwellings per

& POPULATION FORECAST

35,000
annum to accommodate this growth.

26,826
30,000

25,000
The Docklands-Southbank SLA is forecast to increase by

18,370
20,000
over 25,398 new residents between now and 2031. This

14,015
15,000
is in line with historic growth and equates to over 1,209 10,000 PROJECTED 1,209 NEW RESIDENTS PER ANNUM

new residents per annum over the period, indicating a 5,000

requirement for approximately 637 dwellings per annum 0

2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
and increasing residential density. This projected population
YEAR
growth highlights the long-term potential for additional
Source : ABS Estimated Residential Population 2011; DPCD Population Projections 2012
dwellings within Melbournes inner city.

AGE DISTRIBUTION AGE DISTRIBUTION

Australian Bureau of Statistics Census 2011 data indicates DOCKLANDS
INNER MELBOURNE
that the largest demographic residing within the suburb of GREATER MELBOURNE
20%
Docklands is the 25 to 29 age group, at 18.3 per cent of 18%
95% HIGHER GEN Y THAN
GREATER MELBOURNE
PROPORTION OF POPULATION (%)

the population. This demographic is part of a wider stand 16%

14%
out demographic, residents aged 20 to 34 years of age. This 12%
demographic equates to 45 per cent of the population. 10%
8%
The Inner Melbourne catchment is made up of the suburbs 6%

of the Melbourne CBD and city fringe suburbs. The proximity 4%

2%
of this catchment to CBD employment and activity are key 0%
0 to 4

5 to 9

10 to 14

15 to 19

20 to 24

25 to 29

30 to 34

35 to 39

40 to 44

45 to 49

50 to 54

55 to 59

60 to 64

65 to 69

70 to 74

75 to 79

80 to 84

85 +
drivers for a young professional demographic, with a desire
to embrace inner city living and low maintenance dwellings, AGE BRACKETS

particulary in key locations such as Docklands. Prepared by Urbis, Source: ABS Census Data 2011

PERSONAL INCOME TOTAL PERSONAL INCOME / WEEK

According to the Census 2011 data, the residents of Docklands DOCKLANDS
INNER MELBOURNE

registered a median personal income that was 79 per cent GREATER MELBOURNE

TWICE THE PROPORTION

higher than the median personal income registered within 20% OF HIGH INCOME EARNERS

Greater Melbourne. This has been driven by a significant

PROPORTION OF RESIDENTS (%)

15%
proportion of residents within the top income brackets.
The income distribution highlights that Docklands has a 10%

higher proportion of residents in the top tier bracket, with

5%
20.5 per cent earning over $2,000 per week, compared to
only 9.4 per cent across Greater Melbourne. This strong
0%
income profile can be credited to a high proportion of young
$1 to

$800 to

or more
$199

$200 to

$300 to

$400 to

$600 to

$1,000 to

$1,250 to

$1,500 to

$2000
$1, 249
$299

$399

$599

$799

$999

$1,499

$1,999

professional residents in Docklands, with high levels of INCOME BRACKET

spending power and disposable income. Prepared by Urbis, Source: ABS Census Data 2011

06 URBIS VICTORIA HARBOUR OUTLOOK

URBIS.COM.AU
Increased demand registers RESIDENTIAL PROPORTION OF POPULATION (%)

10%
12%
14%
16%
18%
20%
49 per cent rise in sales volumes

0%
2%
4%
6%
8%
over the June quarter MARKET ANALYSIS 0 to 4

GREATER MELBOURNE
INNER MELBOURNE
DOCKLANDS
5 to 9

10 to 14

15 to 19

20 to 24
APARTMENT MARKET ANALYSIS RENTAL ANALYSIS 25 to 29

The Melbourne apartment market saw a clear uplift in Over the twelve months 30ending
to 34 June 2013, three bedroom
median sale price and transaction activity over the most apartments in Docklands 35registered
to 39 a 17.9 per cent increase

GREATER MELBOURNE
95% HIGHER GEN Y THAN
AGE BRACKETS
recent quarter. Melbourne recorded a 3.6 per cent increase in median weekly rents. Average
40 to 44 median rental increases over
since the March 2013 quarter, rising to a median sale the ten years ending June 2013
45 to 49 were 4.4 per cent for two
price of $430,000 for the June 2013 quarter. Furthermore, bedroom apartments and50 to4.5 54 per cent for three bedroom
transaction volumes increase by 49 per cent since the March apartments, with a trend55 tofor
59 rental growth over the long
quarter, growing to a total of 4,712 transactions. As shown term. 60 to 64

in the Melbourne Apartment Sales Cycle, Melbourne has

The Rental Premium graph65 to 69
highlights the premium that
shown significant growth in the most recent quarter after a
apartments within Docklands
70 to 74
have over the wider Inner
period of consistent median sale prices.
Melbourne catchment. Median rental data indicated that
75 to 79

Docklands has historically outperformed the Melbourne Docklands was commanding80 to 84

a rental premium of between
benchmark for sale price growth, with an average median 13 per cent (two bedroom product) and 25 per cent (three
85 +

sale price growth of 9.1 per cent per annum between June bedroom product) over the Inner Melbourne Catchment at
2008 to June 2012. This is significantly higher than the 3.9 June 2013, demonstrating the value that tenants attached to
per cent recorded within the Melbourne benchmark over apartments within Docklands.
the same period. Docklands also recorded a higher median
sale price, at $573,000 in Docklands compared to $430,000 Docklands has a rental premium of
for Melbourne. Ultimately, the sale price growth within
up to 25 per cent over Melbournes
Docklands has been supported by the scarcity of inner city
waterfront sites with close proximity to the Melbourne CBD. Inner City

ANNUAL MEDIAN SALE PRICE GROWTH - 5 YEAR AVERAGE P.A. RENTAL PREMIUM - DOCKLANDS VS INNER MELBOURNE
MEDIAN WKLY RENT RENTAL PREMIUM

TWO DOCKLANDS $540 13%

BED
$480
9.1% 3.9%
INNER
MELBOURNE
DOCKLANDS MELBOURNE

Prepared by Urbis, Source: RPData

THREE
DOCKLANDS $850 25%
BED INNER
MELBOURNE $680
Prepared by Urbis, Source: Department of Human Services Rental Report June 2013

MELBOURNE APARTMENT SALES CYCLE MEDIAN WEEKLY RENT

2 BED DOCKLANDS
NUMBER SOLD QUARTERLY
2 BED INNER MELBOURNE
MEDIAN PRICE QUARTERLY
3 BED DOCKLANDS
12,000 $500,000
3 BED INNER MELBOURNE
$450,000 $900
10,000 $850
$400,000
NUMBER OF TRANSACTIONS

$800
MEDIAN WEEKLY RENTAL ($)

Rental Premium
MEDIAN SALES PRICE

$350,000
8,000 $700
$680
$300,000

6,000 $250,000 $600

$540
$200,000 $500 Rental Premium
$480
4,000
$150,000
$400
$100,000
2,000
$300
$50,000

0 $0 $200
Jun-11

Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13
Jun-83
Jun-84
Jun-85
Jun-86
Jun-87
Jun-88
Jun-89
Jun-90
Jun-91
Jun-92
Jun-93
Jun-94
Jun-95
Jun-96
Jun-97
Jun-98
Jun-99
Jun-00
Jun-01
Jun-02
Jun-03
Jun-04
Jun-05
Jun-06
Jun-07
Jun-08
Jun-09
Jun-10

Jun-12
Jun-13

PERIOD (YEAR)
PERIOD (QUARTER)

Prepared by Urbis, Source: RPData Prepared by Urbis, Source: DHS Rental Report
*June 2013 is preliminary data

URBIS VICTORIA HARBOUR OUTLOOK 07

URBIS.COM.AU
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Level 7, 123 Albert St
Brisbane QLD 4000
07 3007 3800

This publication is prepared on the instruction of Lend Lease and is not suitable for use other than by the party to whom it is addressed. As the publication involves projections and
assumptions it can be affected by a number of unforeseen variables. The forecasts and assumptions are a prediction and whilst Urbis has made every effect to ensure that the forecasts
and assumptions are based on reasonable information, they may be affected by assumptions that do not necessarily eventuate or by know or unknown risks and uncertainties. It should
be noted that past performance is not necessarily a reliable indication of future performance. The information in the publication does not represent financial advice and should not be
regarded as such. It has been prepared without taking into account your financial situation or investment objectives. You should consider the appropriateness of the information in regards
to your current financial situation or needs. Urbis accepts no responsibility for the accuracy or completeness of any such material. The information is subject to change without notice
and Urbis is under no obligation to update the information or correct any assumptions which may change over time. This study has been prepared for the sole use of Lend Lease and is
not to be relied upon by any third party without specific approval from Urbis. This publication is subject to copyright. Except as permitted under the Copyright Act 1968, no part of it may,
in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) be reproduced, stored in a retrievals system or transmitted without prior written permission.
Enquires should be addressed to the publishers.