Colliers International witnesses renewed direction for the CBD’s iconic laneways
Melbourne laneways have become synonymous with the city’s bustling culture, made up of vibrant cafes, bars and restaurants and talented street art enticing tourists to these “hidden” destinations.
In recent months, Colliers International has witnessed retail laneway opportunities receiving greater interest from local and international investors, who are fiercely competing to snap up trophy assets.
“There is a strong presence of niche buyers in the market who are veering away from the conventional main-street addresses to laneway properties to achieve higher yields compared to traditional retail assets,” Melbourne City Sales director, Daniel Wolman, said.
He and colleagues Oliver Hay and David Sia have recently launched 28 Coromandel Place via an expressions-of-interest campaign, with price expectations at the circa $2million mark.
Mr Wolman said the property represented another example of the ongoing trend of investors and tenants tweaking their marketing strategies to incorporate laneways in their portfolios and businesses for the character and point of difference they offered.
“Laneways provide developers the opportunity to be more efficient with their projects, utilising once quiet thoroughfares and transforming them into up-market retail destinations,” he said.
“This has created a win-win outcome for all to enjoy.
“Coromandel Place is part of the exciting project ‘Green Your Laneway’ project, where funding for the revitalisation and face-lift of laneways is being made possible by the City of Melbourne. This is one of the most talked-about projects of the year, which will contribute to the CBD’s footprint efficiency over the next few decades.”
The Green Your Laneway transformation process involves turning CBD laneways into popular spaces for the public to enjoy. Greening concepts have been finalised and construction is underway.
Mr Sia, an Asia Markets senior executive at Colliers International, said Melbourne’s growing population and booming night-time economy was contributing positively to the retail market environment.
“Since the release of the 2016 Census, we have experienced higher demand for investment opportunities in the Melbourne CBD,” he said.
“With the fears of Chinese money restrictions and perception of oversupply of apartments throughout the past year, it is refreshing to see facts and statistics that are showing the true light of the market.
“Since the slow down of Chinese entrants into our market, we have experienced a large number of investors coming out of Malaysia, Singapore, Brunei and Hong Kong, just to name a few. While some may see the restriction of Chinese money, others are taking it as an opportunity to get in on the investment action.”