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West Melbourne has changed rapidly, with former industrial land redeveloped into apartments alongside the remaining warehouses and a small pocket of period terraces near the Flagstaff end.
West Melbourne is largely new apartment development on former industrial land, which brings together several lending considerations at once. Postcode restrictions apply with some lenders, building concentration limits are relevant in the larger developments, and a good deal of the stock is compact.
Former industrial land occasionally raises contamination questions. In established developments this was addressed at planning stage and is not an issue, but on smaller or older conversions it is worth confirming.
Mixed-use buildings are common here, with commercial at ground level and residential above. How a lender classifies such a property determines the deposit, rate and loan term you will be offered, and the classifications differ meaningfully between lenders.
Commercial below, residential above. How the lender classifies it changes everything about the loan.
Generally addressed at planning stage, but worth confirming on smaller or older conversions.
Postcode restrictions and building concentration limits both apply to much of the stock.
Whatever stage you are at, there is a path through it. Pick the one that sounds like you.
It depends on the proportion of the building that is residential and how the title is structured. Some lenders will treat a predominantly residential building on residential terms; others classify it as commercial with a larger deposit, higher rate and shorter term. The difference is significant enough to check first.
In established developments it will have been dealt with through the planning and remediation process. Where it can matter is on smaller informal conversions or older buildings. Lenders occasionally ask for evidence of remediation, so it is worth confirming during due diligence.
For a standard apartment of reasonable size, twenty per cent is a realistic planning figure, though some lenders apply postcode restrictions that push it higher. For compact apartments or mixed-use buildings, more again. It is genuinely property and lender specific here.
A small number of period terraces remain, mostly toward the Flagstaff end, and they finance conventionally as period housing rather than facing the apartment restrictions. They are tightly held and rarely available, so buyers need to be prepared in advance.
Book a free consultation and we will walk you through your options, what you can borrow, and what it will cost.
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Lydian Financial Services Victoria
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Level 12, 15 Collins Street Melbourne VIC 3000, Australia
Copyright © LYDIAN FINANCIAL SERVICES PTY LTD 2026. All Right Reserved.