Melbourne represents only 3 percent of Australia’s total land mass, however accounts for nearly a quarter of Australia’s GDP. With a population of just over 5 million and strong growth projections, Melbourne is one of the fastest growing cities in the developed world. Five of the top 10, and 36 of the top 100 Australian companies have their headquarters in Melbourne.
As at January 2021, Melbourne’s office market vacancy was 8.2% which was a significant increase the sub 4.0% rates seen from July 2018 up until January 2020. Vacancy is anticipated to rise with approx. 175,000sqm of refurbished and new stock to come online across 2021
In order to overview Melbourne’s Industrial market, like Sydney, it is best to look at the west market. Net Face Rents have recorded a 5.4 percent increase over the past 12 months to January 2019, to now be $80/sqm.
The Covid-19 pandemic damped economic growth and migration to Melbourne. Boarder closures and trading restrictions during the pandemic impacted consumer behaviour and growth within the retail sector. Whilst the impact of Covid-19 was felt by many retailers, some sectors such as the large format retail, super markets and neighbours centres were resilient during this period.