‘Strong fundamentals’ fuelling Melbourne construction boom

‘Strong fundamentals’ fuelling Melbourne construction boom

13 October 2017

Several new property developments are fuelling Melbourne’s already hot commercial property boom.

Multiplex is set to begin construction on the first stage of the much-awaited Melbourne Square Project, says The Urban Developer.

Construction of the estimated $500 million stage is set to begin in November with completion expected by the end of 2020.

The project will feature six towers of varying heights as well as a new 3,700-square metre public park for Southbank, with completion expected by the end of 2020.

The first stage will involve two high-end residential towers of 54 and 69 levels with an elliptical design and pleated form emerging from a shared eight-level podium with retail and the public park.

According to The Star Online, the two residential towers have been already been 55 per cent sold.

The $927 million mixed-development is a joint venture between OSK Property Holdings Bhd and the Employee Provident Fund Malaysia (EPF).

OSK group executive chairman Tan Sri Ong Leong Huat said the development was his company’s first outside Malaysia.

“We’d decided to invest in Melbourne because of its strong fundamentals—a strong and stable economy, well-planned urban infrastructure, a great education system, quality healthcare, and rich cultural heritage and diversity,” he said.

The project, spanning over 20,260 square metres, will be delivered in five stages over a period of 8 to 10 years.

In nearby South Yarra, Newmark Capital plans to transform one of Melbourne’s best-known retail sites, the Jam Factory into a $1.25 billion entertainment, shopping, and office extravaganza, reports the AFR.

If approved, the development will turn the dilapidated icon into a 100,000-square-metre mixed-use precinct that will include seven separate office buildings, 50,000 square metres of retail, cinemas and dining with an active network of pedestrian laneways connected by a central plaza.

Modern features will include a new exoskeleton, traditional sawtooth roof, deep, metallic bronze façade louvres and glass blocks, notes The Urban Developer.

Construction is set to create 1,000 jobs during redevelopment and 5,000 jobs will be in place once the precinct is complete.

In another major project, developers Riverlee plan to transform an ageing wharf at the west end of the Yarra River into a $300 million waterfront development, reports Melbourne’s Herald Sun.

The North Bank site will be home to a new complex featuring a 180-room hotel, up to 250 apartments, a function centre, shops and a new 3,500 square metres public park by 2022.

Across town, the Queen Victoria Market precinct renewal project is set to take another step forward as the City of Melbourne lodged a heritage permit to restore the historic sheds and undertake below ground works.

Melbourne’s Lord Mayor Robert Doyle said the permit would allow the council to dismantle, repair and reinstate the western sections of Sheds A to D and construct a below ground operational area to provide modern back-of-house facilities and parking.

Meanwhile, the AFR reported that Lendlease has secured AMP as a major tenant for a new $250 million office tower it is developing at its Melbourne Quarter project in Docklands.

AMP will take out 9,720 square metres in the tower that has been called One Melbourne Quarter at 699 Collins Street.

The 13-storey building is located directly opposite Southern Cross Station, overlooking Melbourne’s CBD and Docklands. The precinct will offer green parks, open public spaces and 40 new retail shops, cafes and restaurants.

It is one of three commercial towers planned for the ambitious $2 billion residential and office project that Lendlease is pursuing in the Batman’s Hill precinct of Docklands.

Due for completion in September 2018, the building has already secured engineering firm Arup as an anchor tenant, while Lendlease is moving in its Victorian headquarters.