This article first appeared in City & Country, The Edge Malaysia Weekly on December 20, 2021 - December 26, 2021

With the glistening waters of the Yarra River winding through Melbourne’s central business district (CBD), the area is buzzing with life and brimming with energy and culture.

With its offerings, from top art exhibitions and galleries — including the National Gallery of Victoria and the Heide Museum of Modern Art — to upscale fashion at home-grown boutiques such as Nique and vintage stores like the Chapel Street Bazaar, there is a certain refinement about Melbourne.

Named the “City of Literature” by Unesco in 2008, it has been declared the world’s most liveable city for seven years by the Economist Intelligence Unit. Its global appeal has created a healthy property demand, with values continuing to soar.

Yarra Park City Pty Ltd, an associate company of OSK Holdings Bhd, is banking on this potential and planning to make a mark with its maiden project there, Melbourne Square. The development is one of the winners of The Edge Malaysia Outstanding Overseas Project Award. The award acknowledges impressive projects undertaken solely by Malaysian private property developers in other countries.

When I visited the project site in 2017, the developer was still laying the groundwork. Following a glamorous, celebrity-filled launch party, Melbourne Square received a lot of buzz across the country. Today, Phase 1 has been completed and handed over to its buyers. It has become one of the most recognisable landmarks in Melbourne.

OSK Property (Australia) CEO Woon Chong Boon, in the interview together with director of sales and marketing Scott Jessop, tells City & Country that branding was instrumental in the success of Melbourne Square.

“We have received wonderful feedback from our homebuyers so far. And I think we have successfully [reinforced] Melbourne Square’s brand value. The development is instantly recognisable and can even be spotted on the way from Melbourne Airport,” says Woon.

The developer is gearing up for the launch of Phase 2, although the details have not yet been ironed out. “Our master plan will comprise a total of six residential towers and offices. We are still in the process of firming up the plans,” he says.

But Woon acknowledges the current hurdles. “We have had our challenges, especially during the lockdowns amid the Covid-19 pandemic. Nonetheless, we believe sentiment will pick up, especially when the borders reopen and foreign students, workers and investors are able to come in.

“Australia is one of the better countries in managing the pandemic, and the vaccination rate is high as well. From a long-term perspective, it is a safe haven. We are confident the market will recover soon.”

Sitting on a five-acre freehold tract, Melbourne Square is a mixed-use development comprising apartments, a hotel, offices and a retail component with a total gross development value (GDV) of A$2.8 billion (RM9 billion). The Employees Provident Fund (EPF) has taken a 49% stake in Yarra Park City for A$154 million, and holds the development rights for the project.

“EPF has contributed a lot to Melbourne Square, in terms of the profile of our project, the branding, creating trust and confidence in the project, not only among our purchasers, but also our stakeholders,” says Woon.

Phase 1 has two towers — one with 52 levels and the other 67 — comprising 1,054 apartments that range from 1-bedroom (49.4 to 55.4 sq m), 2-bedroom (63.7 to 80.4 sq m) and 3-bedroom units (89.9 to 143 sq m) to penthouse and duplex penthouse units (131.7 to 316.8 sq m). Selling prices range from A$402,100 to A$12.1 million.

The first phase also has a retail component that includes Victoria’s flagship Woolworths full-line supermarket, spanning two levels, as well as cafés and restaurants. The retail component was completed in 4Q2020.

“Apart from the residential component, the retail component has been performing well since opening on Dec 22, 2020. We anticipate a footfall of about 25,000 per week. There are a lot of activities available, including café hopping and dog walking in the parks nearby,” says Woon.

“When we were configuring the master plan for Melbourne Square, we worked closely with consultants to figure out what the area really needed, and that was how Woolworths came on board.”

Jessop says, “We want to be able to grow and support the food and beverage operators. We may host public and community events, so we can really harness the [potential] and locality.”

“Our target market is predominantly young families, first-time homebuyers with a good mix of owner-occupiers and both local and foreign investors. To date, the first phase is more than 80% taken up, of which 15% are Malaysian buyers,” says Woon.

Jessop chimes in, “In fact, for the first phase, we are confident we will achieve 90% take-up soon. We have some remaining units to sell, but despite the challenges, and not being able to reach our foreign customers, we are still able to sell to the local market.

“For the property market in Melbourne, it is still very, very cheap to borrow and to lend; interest rates are still competitive. There may be one or two minor rises in the future, but not anytime soon. We have also seen a huge lack of future supply.

“New projects and new construction were down about 75% from three to four years ago. The values of apartments have increased moderately, but homebuyers are going to run into this supply problem. There is also pent-up demand. Other factors that may contribute to its growth include the Formula 1 Grand Prix in March and the Australian Open tennis tournament in February.”

“Melbourne is definitely the place that everyone would want to be. It has a strong economy with good infrastructure, warehouses, education system and cultural diversity,” says Woon.

Melbourne Square, with its sharp and edgy façade, was designed by renowned firm COX Architecture. With its interiors designed by Carr Design, Melbourne Square exudes an overall contemporary feel. “It is an impressive structure with a lot of interesting details, against the Melbourne skyline,” says Jessop.

“One of our best strategies was identifying really good consultants for the project. We were able to lean on them for advice on Melbourne Square.”

The development offers facilities aplenty, including a childcare centre (THINK-Nido Early School), games room, sauna, yoga studio, gym, 35m pool, golf simulator room, music room, cinema, lounge/bar, kitchen, premium lounge, pool lounge, spa and private dining rooms.

Despite the heavy footfall, traffic and burgeoning developments, Melbourne Square’s area of Southbank, facing the nearby Melbourne CBD, has maintained good, green infrastructure through parks, gardens and tree-lined streets. The Royal Botanic Gardens, Queen Victoria Gardens, Alexandra Gardens and Albert Park Lake are large public parks close to Southbank, offering 340ha of open space.

Melbourne Square is surrounded by well-established inner-city precincts, the bustling CBD and the tranquil grounds of the Royal Botanic Gardens. Its Southbank address is on the south side of the Yarra River, directly opposite the CBD. Residents can access the city via multiple footbridges over the Yarra River and it is close to Port Phillip Bay, St Kilda beach and Port Melbourne Beach.

The Crown Casino Entertainment Complex is also in Southbank, with 510,000 sq m of gaming, retail, restaurants, nightclubs, a cinema, three hotels and other entertainment amenities, making it the largest casino complex in the Southern Hemisphere.

Other nearby amenities include the Docklands & South Wharf, South Melbourne Market and Queen Victoria Market. Melbourne Square is also near top educational institutions such as the University of Melbourne, RMIT University, Swinburne University and Victoria University.

The developer is keen to expand its presence in Melbourne. “If we embark on a project or buy a new parcel of land, we will take a lot into consideration and we will screen for the financial resources required,” says Woon.

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