Can the commercial property be used as residential? Indeed, it can. The past few years have seen an unprecedented boom in the construction of high-rise apartments and condominium towers in Melbourne’s inner regions. These towering structures are typically rented out for a handsome profit by the thousands of Melbourneians who want to make Melbourne their home. Here are some of the Melbourne commercial property markets that are seeing this phenomenal growth:
The Residential Property Market
The Melbourne residential real estate market has been in a constant state of growth for several years now. The top 7 commercial real estate markets in Melbourne that have seen increases in rental rates and vacancies are North Melbourne, Collision, Docklands, Broadmeadow, Kingsford Smith, and Sydenham. Melbourne’s growing population and its trend towards more extended stays for visits to Melbourne Hospital and Government offices are feeding an increase in demand for Melbourne commercial property. The drop in foreclosures and lower interest rates have also resulted in a sharp rise in rental rates across the board. It’s not just the Melbourne apartments and condos that are benefiting from this; even areas with a lower profile, such as Broadmeadow and Kingsford Smith, are seeing an increase in rental growth.
The Commercial Property Market
This segment of the Melbourne commercial property market is seeing tremendous growth at a reported annual rate of over 25%. Some of the factors behind this growth are the escalating value of Melbourne properties, lower vacancy rates, and better connectivity due to the increased number of interconnectivity systems. In addition, Melbourne’s CBD has come into focus as an attractive residential investment property. Located close to the city’s business district, residential properties in the CBD have increasingly been sought after.
The High-Quality Tenant Pool
Melbourne commercial property is an excellent opportunity for investors to rent or sell a premium real estate parcel. If you are a landlord, you can lease or sell premium properties within a short lease term and avoid paying expensive property taxes and retain only a quality tenant. If you want to rent the property, you can also attract a quality tenant by maintaining the property at an attractive price.
The Growing Distribution of Commercial Real Estate
More than 3000 new developments in Melbourne are planning to occupy thousands of vacant commercial spaces. As a consequence, the supply is falling while the demand is increasing. However, the quality tenant base is growing as well. Many of the existing commercial properties in Melbourne are leased out to multinationals, international businesses and other established businesses. The growing supply of vacant retail spaces and the falling demand has resulted in better rental returns and vacancy rates.
Increasing Consumer Awareness of Melbourne Accommodation Options
More people are looking for Melbourne accommodation options to accommodate their family, especially nighttime. The increasing popularity of short stay Melbourne accommodation has resulted in better occupancy rates and a falling rental vacancy rate. This has led to lower rental prices and better quality tenants. The growth of the financial markets has also led to improved credit terms for the tenants. Melbourne commercial property investment will continue to grow as the economy of Australia continues to develop. As the consumer spending power increases, the value of the Australian dollar will appreciate other currencies.
A Need For Melbourne Offices
If you are looking for a way to make the most of your commercial property investment, then you must look into the possibility of leasing your commercial premises. Leasing your commercial premises means that you won’t have to invest a large amount of money in building and to renovate it. In addition to this, you will not need to provide expensive leases or rent payments. The lease payments will also contribute to your profit. But before you decide on a leasing decision, you should check if your expected returns are within the range of your financial capability.
Conclusion:
These three reasons are why people think that it is not possible to use commercial property as residential property. But the reality is that if you are willing to put in a lot of hard work and you are aware of the benefits that leasing can provide you, then you should opt for leasing your commercial premises. You can even find affordable leasing plans in Melbourne according to your budget. So don’t just sit and think that you cannot buy or build your residential property. With the right help and assistance from an expert, you will be able to get it done.
