City Beat July 2024: Performance gap widening between units and houses
Units in Melbourne continued to outperform it's house market counterpart.
Unit values rose 0.2 per cent, according to CoreLogic Monthly Hedonic Index, a modest gain, but considerably higher than the -0.3 per cent decline in the house market.
It was the fourth month in a row that unit values in Melbourne outperformed.
The median value for units in Melbourne is now at $610,000.
What happened in Melbourne’s off the plan apartment market in June
One of Melbourne's biggest off the plan apartment developments achieved a major milestone in June.
Nine months after its official launch, OSK Property and Multiplex broke ground on BLVD, the latest tower at the $3 billion Southbank precinct, Melbourne Square.
BLVD will deliver much-needed residential stock to Southbank, just over 600 apartments across a 74-level that will also home private dining rooms, state-of-the-art gyms, a 25m indoor swimming pool, spa, sauna, golf simulator, entertainment and lounge spaces, and a two-level co-working area on levels 55 and 56.
Multiplex is expecting to complete the building in Q1 2028.
Read more: OSK Property and Multiplex break ground at BLVD, Melbourne Square
There were two residential developments launched last month, in Hampton and South Kingsville.
Melbourne developer Noetic Place revealed its eponymous Hampton apartment development, Noetic Places, offering some of the largest apartments on the market in the burgeoning Bayside suburb.
Noetic Place, led by Stephen Barrow-Yu, worked extensively with the local council and community to bring 33 two, three and four-bedroom apartments designed to appear as three individual homes, mimicking the scale of nearby houses on the tree-lined Service Street, within a stroll of Hampton's beach, village and station.
Read more: Noetic Place Hampton: A celebration of design, landscaping and community
Over in South Kingsville, developer Blue Run launched Kings Lane, its boutique townhouse development comprising just 25 three and four-bedroom townhouses designed by Rothelowman.
The two and three-level townhouses will sit on New Street, tucked away conveniently off Blackshaws Road and near Edwards Reserve.
While supply still remains one of the largest constraints in the off the plan apartment market, there were some notable projects mooted for the future.
Developer Kincrest submitted plans to the Stonnington Council for a mixed-use building on Grattan Gardens in Prahran.
Kincrest, led by Tom Howgate, secured 3-7 Grattan Street market, and then amalgamated the neighbouring single-level warehouse to create 1,613 sqm and a 35-metre frontage to the park.
The plans by Cheah Saw Architecture are for 22 apartments across a seven-level building. The two three and four-bedroom apartments, offering larger than standard sizes, something which is built into Kincrest's development ethos, will sit above two levels of strata offices and a ground-floor cafe and retail space that will face the park.
Read more: Exclusive first look: Kincrest plots new Prahran apartments
Camberwell is also set for a new development with the City of Boroondara approving a new 12-level mixed-use development that will become the second tallest building in the area.
The project, at 697-699 Burke Road, Camberwell, has been designed by Cera Stribley for property developer Above Zero and will have 36 apartments set above five levels of office space and retail on the ground level.
The approval follows an extensive planning process that has been ongoing since 2015 when the City of Boroondara first refused a 15-level, 62-unit development on the 1,950 sqm site.
The final design, which gained support from both the council and previous objectors, includes office spaces on levels one to five, apartments on levels six to eleven, and a communal rooftop terrace on level 12.
The Camberwell Junction area is expected to need a further 1,500 additional new dwellings by 2051 to keep up with population growth, the planning documentation suggested.
Read more: Camberwell set for Cera Stribley-designed mixed-use development after green light
Developer Abadeen also has its eyes on its future development pipeline. Keen to focus on Melbourne's premium owner-occupier market since its expansion from Sydney's Lower Norht Shore, Abadeen, led locally by Andrew Leoncelli, grabbed a parkside development site in Caulfield North.
Abadeen beat out several other developers to secure 1,060 sqm on Caulfield Park.
The site at 219-229 Balaclava Road is north-facing and offers uninterrupted views to the north and northwest, over the park and out to the city.
It was offered by JLL with permit-approved plans for a new seven-level apartment development designed by CHT Architects.
Abadeen will go back to the drawing board and is engaging a leading architect to tweak the plans to make the apartments larger, but they will stay within the same envelope of what's been approved.
Read more: Exclusive: Abadeen grab next Melbourne off the plan apartment development site
