Melbourne has long been a hub for culinary masterpieces, nightlife, and culture. So, what happens to a city when it is starved of the elements that once made it desirable?
This is exactly what happened in 2020 when Victoria and the Melbourne metropolitan area suffered through a hard lockdown that lasted over 100 days. As a result, the state’s economy and businesses suffered severe hardship.
Working from home arrangements sent a shockwave through the once indestructible commercial property market in Melbourne. The pandemic led to many businesses moving towards a completely remote working environment. Which meant they didn’t need offices to operate, decreasing operating costs significantly, and though for many companies, this was temporary, for some, it will be a permanent move.
So, for Melbourne-based businesses, when they think about their futures, they need to ask themselves, is our future located in the CBD?
While the pandemic has wreaked havoc within the city’s central areas, it also revitalized the suburbs. It instead injected Melbourne culture into suburban shopping strips, backstreets, and parks.
As a result, the suburbs are heating up, and rent and property prices for commercial property in the suburbs are rising. Wherever the demand goes, so do the costs, just as they did previously in the CBD.
So, when considering whether you should be purchasing or leasing commercial property in the suburbs or the CBD, there are many aspects to consider.
This all depends on whether you consider purchasing or leasing and whether you think this move will be permanent or temporary. While the suburbs are currently a hub for activity, they are more expensive, have much more competition, and cannot guarantee that they will continue with this activity.
On the other hand, within the Melbourne CBD, you can find well-priced spaces that may be a better option in the long run. Why will this be a better long-term option? This is because the CBD will eventually return to its former glory as a cultural and population hub. With the government backing hundreds of infrastructure projects, including the new metro tunnel, the 1 million workers, shoppers, and tourists will eventually return daily to the beautiful city.
Alongside this is stamp duty concessions for the City of Melbourne and an allocated $107 million to support CBD business recovery, which was announced in the May budget by the state government.
So, with 41 percent of workers have already returned to the CBD in April 2021, Melbourne will be back before we know it if this continues in an upward trend.
If you are a business looking to purchase or lease commercial property, either in the suburbs or the CBD, you need to ensure you are working with the professionals, such as the team at Axis Property.
The real estate company Axis will help you with property management, negotiation, and offer genuine customer service for people seeking to buy, sell, or lease commercial properties in Melbourne.
