State of Markets - VIC May 2012

VICTORIA

Geelong seeks employment precinct funding

Greater Geelong city has applied for federal government funding for the Geelong Ring Road Employment Precinct to facilitate long-term residential development.

“An extension of the Geelong Ring Road to the Bellarine Peninsula is vital for sustainable, long-term residential and commercial development, and a much sought after aspiration for our region,” the application noted.

The submission requests $3.6 million from the Regional Development Australia Fund to service 327 hectares with infrastructure, roads and services that will attract new industries and maximise the area’s economic potential.

The project could create 10,000 new jobs once the 500-hectare site is fully developed; two thirds of the land is currently undeveloped.

The project is designed to assist the Geelong, Western Victoria and Metropolitan Melbourne markets with access to major transport hubs.

Quality stock hard to find in Melbourne

Melbourne’s property sector will help drive the nation’s economy, although the city faces a “chronic undersupply” of investment-grade property, a number of speakers at a property outlook seminar said recently.

“Melbourne has closed the gap on Sydney and will continue to offer stronger growth potential over the next decade,” trend forecaster Bernard Salt said at the WBP Property Outlook breakfast meeting.

Mr Salt said new lifestyles and social behavior are likely drivers of demand for well-positioned investment property in Melbourne’s inner suburbs.

“The city has experienced the second largest growth of all Australian capitals in the past five years, at 7.6 per cent,” said WBP Property Group CEO Greville Pabst.

WBP Property Group provides property valuations, property management services and advice to prospective home buyers.

“Rents for housing have increased 10 per cent,” he said. “Yields will stay fairly consistent as property prices and rents track similar growth.

“In units, rents are not growing as fast because there is an increase in stock.”