Why investors are keen on Heidelberg West apartments, Cultivate
Investors have been witness to the growing attractiveness of Melbourne’s Heidelberg West in recent years, as the ramping government expenditure totalling more than half a billion dollars has started to snowball the suburb's underlying value.
Heidelberg West apartments have seen 5.3 per cent price growth per annum over the past 10 years, according to SQM Research. Population growth has been similarly steady, up 1.3 per cent per annum for the past decade, ABS and Urbis data found.
Demographics in the Heidelberg West area reflect a younger age demographic, with a higher proportion of residents renting their property. Some 59 percent of residents are renters, more than double the 28 per cent in Greater Melbourne average.
And there’s potential for further growth in the area due to the $160 million Olympia Housing Initiative, which is set to revitalise housing in Heidelberg West, Heidelberg Heights and Bellfield. Outdated public housing is being replaced by more housing more appropriate to local demographics.
There’s also the proposition of the $50 million redeveloped town square in Heidelberg West, as well as $210 million development in neighbouring Ivanhoe of an 8,900 sqm site that will include residential, aged care and child care facilities.
Growth in median weekly rents has been steady in the Heidelberg West/Heidelberg rental area over the past decade. Data indicates that one-bedroom units achieved the strongest growth, at 6.5% per annum for the last 10 years. This is above the Greater Melbourne average of 5%. Over the same period, two and three bedroom units grew at 5.2% and 4.3% per annum respectively, indicating continued demand for rental units across all sizes.
Heidelberg West has the lowest rental vacancy rate among the surrounding suburbs, currently at 1.3%.
Cultivate, at 294 Bell Street, has a walk score of 80, indicating a very walkable neighbourhood with easy access to grammar schools and colleges, universities, hospitals, research hubs and major retail centres. It also has extensive transport links and a direct road network.
Cultivate is located 12km north east of Melbourne’s CBD. It is close to a range of employment, education, retail and services hubs including:
- Northland Shopping Centre
- Heidelberg Activity Centre
- Biomedical Alliance Precinct Specialised Activity Centre
- La Trobe University Bundoora
The proportion of residents working in white collar roles has been on the rise in Heidelberg West. The young age profile, high proportion of renters and prevalence of lone person households, is supportive of demand for apartment housing.
This is typical of a suburb that is undergoing gentrification and the same trend is evident in the adjacent suburbs nearer the Melbourne CBD, which have seen healthy price growth. It was even named a National Employment and Innovation Cluster by the Victorian Planning Authority.
National Employment Clusters are defined as, designated geographic concentrations of interconnected businesses and institutions that make a major contribution to the national economy and Melbourne’s position as a global city.
