Melbourne has been voted as one of the world’s most liveable cities according to The Economist's Global Liveability Index 2023. The diverse demographics that call Melbourne home, as well as its cafe culture, vibrant street art, world-class universities and restaurant institutions, has made it not only one of the best places to live in Australia, but in the world.
Melbourne New Development Sector
The Melbourne off the plan apartment and townhouse development market is ripe to benefit from the forecasted boom in population, as well as the record low approval levels in the Victorian capital.
Charter Keck Cramer says prices in the off the plan market could rise as much as 25 per cent.
Their analysis found that established units (townhouses and apartments) are currently undervalued by between 15% to 20%, and given the supply v demand imbalance, will continue to correct upwards over 2024 as the market finds a new equilibrium.
Unit values in Melbourne, which incorporates both apartments and townhouses, rose 0.1 per cent in April, according to data from property data analytics firm CoreLogic's Monthly Hedonic Index.
The value of units outstripped houses for the second month running. House values decline -0.2 per cent over April.
The biggest developers in Melbourne
The biggest off the plan apartment and townhouse developers currently are Mirvac, Lendlease, GURNER, PACE Development Group, Beulah and Milieu. They operate across the whole of Metro Melbourne, with developments in Southbank, Brunswick, Docklands, Flemington, Coburg and Elsternwick. At the start of 2024, Urban reviewed the top off the plan apartment and off the plan townhouse developers in 2024. (link?)
Some of the largest off the plan developments currently under construction are Trielle by Mirvac in Docklands, Collins Wharf by Lendlease, STH BNK by Beulah in Southbank, and the Highett Common masterplan by Sunkin Property Group in Bayside.
The biggest news in 2024 in the Melbourne off the plan apartment market and the Melbourne off the plan townhouse market has come from some of Melbourne's most popular suburbs.
Fitzroy, one of Melbourne’s oldest suburbs, has hit a new high following the sale of three amalgamated apartments in Chapter Group's Fitzroy Fitzroy project on Smith Street.
The three combined apartments, which will make a 400 sqm home with 120 sqm of outdoor entertaining space, sold for around $10 million.
Brunswick, on the other hand, has seen one of its fastest-selling projects with Beulah’s Brunswick Established, which has collectively sold 65 per cent of its townhomes during the first day of launch.
The sales success equated to $32.5 million worth of sales.
The next wave of new Melbourne developments
Looking ahead, Melbourne developer Ross Pelligra is set to take on one of his largest projects to date, lodging plans for a huge multi-stage precinct in Melbourne's growing Fishermans Bend precinct.
Citinova Director Nathan Minicozzi said since the Architectus-designed proposal was submitted, they've received positive feedback from the council.
The 1.77-hectare site at 99-109 Lorimer Street will be home to two towers—one will be dedicated build-to-sell, while there will be more build-to-sell apartments in tower two that will be home to 200 hotel rooms and extensive amenities.
The five-stage project will include an unencumbered 3,075 sqm public open space by landscape architect Mala Studio.
Port Melbourne's neighbouring suburb, Southbank, is also looking ahead for future developments with plans submitted by LAS Group for a new 25-level tower designed by Fender Katsalidis (FK).
FK has put together plans for the 188-apartment tower at 38 Clarke Street, on the corner of City Road and Clarke Street just behind Crown Melbourne.
On the other side of the Yarra River, lifestyle developer GURNER™ has submitted plans for the first stage of its Docklands mega-project, Elysium Fields.
Gurner says Elysium Fields has been created around the concept of a futuristic wellness and anti-ageing utopia, where purchasers will have access to some of the world’s most advanced anti-ageing, holistic health and nature-based wellness principles within a city forest and landscape oasis.
Elysium Fields will be located in a 27,000 sqm island infill site at 208-226 Harbour Esplanade, which once complete will encompass circa 1700 dwellings with an end value of $1.7 billion.
Designed by Fraser & Partners, the development will include over 1,350 BTR and BTS apartments, a retail and hospitality precinct, a 4-star short-stay hotel of circa 100 keys and another premier 5-star hotel in the main tower of over 250 keys, with state-of-the-art conference facilities, a business club and hospitality offerings.
GURNERTM has also submitted plans for its 4,651 sqm trophy site at 424-426 St Kilda Road for around 200 apartments over a 19-level building designed by One World Trade Centre architecture firm SOM, with a focus on large two, three, four bedroom and two double-storey penthouse offerings, alongside a signature amenity offering.
