South East Melbourne Report

Built For Your Success Specialises in cutting-edge

commercial property development

Author: Ruben Fuentes

www.istructaustralia.com.au

SOUTH EAST MELBOURNE

2030How will it grow?

MELBOURNE’S POPULATION IS GROWING AT A STEADY RATE

5.8 million (2030)

4.44 million (mid-2014)

MELBOURNE’S POPULATION IS GROWING AT A STEADY RATE

BY 2030, METROPOLITAN MELBOURNE WILL GROW FROM 4.35 MILLION PEOPLE TO 5.8 MILLION PEOPLE

THE OPPORTUNITY

CENTRAL

WESTERN

NORTHERN

EASTERN

SOUTHERN

+260,000

+370,000

+470,000

+200,000

+480,000

+129,489

+157,419

+157,895

+79,862

+171,309

+320,000

+125,000

+140,000

+100,000

+170,000

+32%

SOUTHERN & EASTERN SUB-REGION

Jobs%Growth:%

BY 2030, METROPOLITAN MELBOURNE WILL GROW FROM 4.44 MILLION PEOPLE TO 5.8 MILLION PEOPLE

30,000 new dwellings per year will be needed in the Melbourne metropolitan area

If current trends continues for the next 15 years

More jobs will also be needed

The top two employment growth regions in Australia (2013-2108 projected)

Melbourne West

Melbourne South East

The Victorian economy has been transitioning from manufacturing to services for many years

manufacturing

services0% 2% 4% 6% 8% 10% 12% 14% 16%

Public administration and safety

Transport, postal and warehousing

Wholesale trade

Education and training

Retail trade

Construction

Health care and social assistance

Manufacturing

Professional, scientific and technical services

Financial and insurance services

2014

2004

2001

Percentage of jobs in services industries:

Services 67%

Other 33%

2011

Services 61%

Other 39%

2001

Growth services include:

Financial & Insurance

Scientific & Technical

Health Care & Social Assistance

Public Administration & Safety

The South East corridor has historically been the fastest growing, primarily through residential development

It is well served by major retail centres:

Chadstone Fountain Gate

Frankston Knox City

The region includes 2 of Melbourne’s 3 established National Employment Clusters:

Monash Employment Cluster Dandenong South Employment Cluster

“National Employment Clusters are designated concentrations of integrated

businesses and institutions that make a major contribution to the national economy and

Melbourne’s position as a global city.” (source: Plan Melbourne)

Monash Employment

Cluster

58,500 jobsA unique mix of

education, research & industry

Monash Employment

Cluster

Significant Employers

Monash University (Australia’s largest)

The Australian Synchrotron

The Melbourne Centre for Nanofabrication

Monash Medical Centre

Monash Business Incubator

The CSIRO’s largest site in Victoria

Monash Employment

Cluster

Key Partners

City of Monash City of Kingston

City of Greater Dandenong Monash University

Monash Medical Centre The Australian Synchrotron

CSIRO Monash Business Incubator Monash Enterprise Centre

Chadstone Shopping Centre

Dandenong South Employment

Cluster

12,500 business 55,000 jobs

30kms from the CBD

Manufacturing Health – Hospital

Education – Chisholm & Kangan Transport / Logistics

Warehousing

Dandenong South Employment

Cluster

Victoria’s first eco-industrial park, LOGIS, which features a 74-hectare

Innovation Park

Dandenong South Employment

Cluster

Victoria’s first industrial development to achieve a 5-star Green Star Industrial

Design rating

Dandenong South Employment

Cluster

Rail network Monash Freeway Princes Freeway

Eastlink

Dandenong South Employment

Cluster

Vital transport infrastructure:

Port of Hastings South East rail freight link

South-East Airport

Dandenong South Employment

Cluster

Possible future additions to

transport infrastructure:

People have a strong preference for living close to services & amenities

(including education & health care facilities, transport hubs & retail centres)

The housing equation:

renter’s market apartments are popular

significant overseas investment in property older residents (in particular) are looking

for semi-detached dwellings

Major infrastructure projects – including rail network upgrades, the development of the Port of Hastings, a freight hub, & a south-east airport – would impact on

both the employment & residential landscapes

Summary

Melbourne is moving to a

services economy

Melbourne is growing rapidly in the east and

south east The population breakdown is skewing older (& younger)

Summary

There is an undersupply of semi-detached

dwellings & apartments

There is a need for employment in

growing sectors like health & education

There is need for housing close to services & amenities

Summary

There are significant opportunities for investment and development through the south-east Melbourne corridor, however

picking a site that fits the purpose is crucial

Thank you

State of Victoria for use of information

MacroPlanDimasi additional background

Ruben Fuentes is the Managing Director of iStruct Australia Pty Ltd, Australia's boutique commercial property development company that is "Built for Your Success”.

Ruben believes that by cultivating broad interests across a wide range of construction, design, development, and management topics, iStruct is better placed to understand the needs of each client and the best ways to meet them.

About the Author

Connect with Ruben on LinkedIn: https://www.linkedin.com/in/rubenmfuentes

Follow Ruben's blog on the iStruct website: http://www.istructaustralia.com.au/blog

Contact Ruben via email: info@istructaustralia.com.au

Ruben Fuentes