Go west – More apartments on the rise in West Melbourne

The winds of change are blowing over West Melbourne. Once a quiet mix of historic industrial buildings and Victorian terrace houses, it is fast becoming an apartment hotspot thanks to its proximity to the city centre – a snip at three kilometres – plus attractions such as the Flagstaff Gardens, the Queen Victoria Market, and RMIT and the University of Melbourne.

Former warehouses are rapidly being converted to townhouses, and a number of apartment developments currently underway capitalise on West Melbourne’s double bonus: its advantages of established amenities and facilities, and its close proximity to the vibrant northern precincts of the city of Melbourne such as North Melbourne and Carlton.

“West Melbourne appeals as the hidden value gem of inner-city apartment living – for those on a budget looking to get in the housing market as owner-occupier or investors,” says Domain Group chief economist Andrew Wilson.

Dr Wilson says West Melbourne is one to watch in the capital appreciation stakes.

“With a current median of just $440,000, well below neighbouring Docklands’ $610,00 and Southbank’s $565,000, West Melbourne has clear potential for capital growth over the median to longer term as Melburnians are set to increasingly embrace inner city apartment living,” he says. “Investors will also be attracted by the current gross yields of 5.4 per cent and rising rents.”

Don’t go thinking, however, that it will be a developer free-for-all. Determined not to replicate the planning mistakes of Southbank, with its lack of amenity and forest of forbidding high-rises, and to protect West Melbourne’s significant heritage streetscapes, the City of Melbourne is midway through working with the community to compose its new West Melbourne Structure Plan – an update of its outmoded West Melbourne planning framework – to guide the inevitable development of the currently lightly-populated area.

“With significant growth expected in surrounding areas … West Melbourne’s role as an inner-city neighbourhood is under pressure to change,” it says. “The City of Melbourne needs … to ensure that it is a sustainable, liveable neighbourhood with enough open space, transport and infrastructure and to ensure that any growth respects its character and heritage.”

Chris Loftus, architect with Spec Property, the developers of the 250-apartment Flagstaff Green on Batman Street, says it’s important to heed the mistakes of the past.

“There are going to be taller buildings in West Melbourne, that’s a given, but there’s a lot of thinking going on about engagement with the street and amenity within the buildings. We did a lot of work with the City of Melbourne and Department of Planning on this. These emerging areas take time and it’s important to get it right.”

To that end, Flagstaff Green has retail and commercial activity on the ground floor and podium level apartments with balconies directly on the street. “There’s passive surveillance and activity at the base of the building.”

Creating a project that would appeal to downsizers and owner-occupiers as well as investors was crucial to Spec Property, says Loftus.

“We’ve got a rigorous research process we though – a product vision based on our own research and street smarts – and as the apartment market matures, it segments into first home buyers, and downsizers, and investors and so on. Segmentation is important – for us it’s not a building full of investment apartments. So with Flagstaff Green we’ve tailored it to different buyers – we have loft apartments, which are not your average apartment, and some that face onto the laneway, and then on the upper floors there are spectacular views over the park to the city.”

“It’s a burgeoning area… there’s not a lot of stock there at the moment. We see it as a key area. The location speaks for itself, with the infrastructure and proximity to the cool areas around the city. I think West Melbourne has got a pretty bright future.”

Size and location key factors

He often travels for work, so Rocco Barillaro, pictured with wife Nina, knows what he wants when he goes shopping for an apartment. “Something like a hotel room, with those kinds of facilities,” says the engineer who recently bought an apartment in the Flagstaff Green development. “There are plenty of apartments going up in and around the city, but so many of them are getting too small, trying to fit too much into a tiny space, and feel claustrophobic as a result.” Flagstaff Gardens was quite the opposite. Barillaro bought off the plan because of the size – his two-bedroom apartment is 72 square metres – its abundance of natural light and the fact the tower is confined to 20 storeys The location was also an important factor. West Melbourne appeals because of its excellent proximity to the CBD while retaining its fringe neighbourhood factor. Barillaro says: “I can walk to the Queen Victoria Markets, and I can walk into the city. What I really like about it is that it’s right on the edge, not in the city, but within easy walking distance to everywhere.”

Cover property

Flagstaff Green, 15 Batman Street, West Melbourne
$350,000-$1.5 million

Bordered by the Flagstaff Gardens, the CBD and Docklands, the 20-level Flagstaff Green development boasts pole position in Melbourne’s newest city fringe apartment precinct. Featuring 250 apartments, including 23 with three bedrooms and 17 split level two-bedroom, two-bathroom lofts, the Spec Property apartments feature wide format timber floorboards, stone finishings, wool carpets, frameless glass shower screens and generous storage options. In easy walking distance to the Queen Victoria Market and city centre, it enjoys an elevated position and spectacular views over 7.7 hectares of parkland and neighbouring historic buildings.

A wide range of amenities that will appeal to downsizers and owner-occupiers as well as investors include a lobby with concierge, residents’ lounge with fully equipped kitchen and dining facilities, landscaped courtyard, media room, indoor pool and spa, gymnasium and rooftop gardens with teppanyaki bar (for the exclusive use of residents on levels 15 to 20) and dining facilities.

Spec Property 1300 118 119

Or try these…

1501/423-435 Spencer Street
$750,000

A three-bedroom penthouse loft residence set over the top two levels of the new DUO development with great views of the city and the bay, it also features two bathrooms and wrap-around entertainer’s balcony.

Castran Gilbert, Charles Callis 0407 760 068

38/28 Jeffcott Street
$800,000-plus

This dual-level four-bedroom apartment occupies the top floor of the boutique Flagstaff Square complex, and has recently been updated with timber floors.

MICM Real Estate, Jason Lien 0466 445 269

303 & 403/145-147 Rosslyn Street
$695,000

Construction is about to commence on the boutique West Village development of only 19 dwellings, including these two-bedroom apartments with floor to ceiling windows, terrace and communal rooftop.

Castran Gilbert, Taja Trebse 0407 766 324