Richmond has certainly seen significant transformation in recent timessFirst there was the GFC and rise in online shopping. Bridge Road’s traditional reputation as a destination for cheap clothing outlets was seriously challenged and we saw, in effect, a clean up with many of the cheap clothing outlets ousted. Commercial property vacancy rates shot through the roof and the strip's vibrancy faded, but only temporarily.
Now, enormous residential apartment construction is underway. The subsequent influx of residents demand an immediate shift in local business offering. Residents want easy access to food, entertainment and services; stuff they can’t get online and don’t want to stray too far for.
This shift in demand will evolve Bridge Road into a distinctive and vibrant strip centre offering and that process is already well underway.
According to Urban Melbourne (https://urban.melbourne/) there are currently 46 projects on the cards in Richmond. In Bridge Road alone there are 5 projects in planning; 3 approved, 1 in registration & sales and 2 under construction.
Some of the significant projects include:
Dux Richmond Hill
153 Bridge Road
Site area: 2,315sqm approx
13 levels, 177 Apartments, 8 Townhouses
Retail: 500sqm approx.
183 Bridge Road
Site area: 987sqm approx.
9 Levels, 55 Apartments
Retail: 500sqm approx.
Anchored by great accessibility to public transport, proximity to the CBD, vibrant nightlife and restaurant/café culture, it is easy to understand the strong presales for the current developments, and why there is continued demand from developers for scalable land in Richmond, particularly for sites greater than 1,000sqm.
As a further driver, Bridge Road is not subject to strict planning controls such as Design & Development Overlays and Height Restrictions that many other highly prized residential locations are.
With the increasing site values, comes increased Land Tax, which in some cases is not recoverable under commercial real estate Lease agreements, particularly Retail Leases. Yields are compressing and net returns on leased investments are typically reducing. We are seeing are huge disparity between Capital Values and Site Values.
Have you considered what the underlying value of your Richmond land could be?
Please feel free to contact one of our agents for an accurate commercial property valuation at any time.