City Beat June 2024: Melbourne units outperform houses for third straight month
The value of units in Melbourne continued to outstrip the growth of the house market in the Victoria capital in May.
CoreLogic's Monthly Hedonic Index found unit values (which incorporates apartments and townhouses), rose 0.3 per cent, compared to flat house market.
Melbourne's median unit value is now pegged at $614,000 after rolling quarterly growth of 0.3 per cent, while the house market has dipped -0.5 per cent over the same period
What happened in Melbourne’s off the plan apartment market in May
There was significant progress at several major developments across Melbourne in May.
Privately-owned developer Sunkin Property Group formally appointed SK Construction to deliver its $600 million Highett Common project in Melbourne’s bayside.
The 9.3ha Highett Common will be delivered over multiple stages during the next five years. The $70 million stage one construction program, which began this month, aims to complete 167 new apartments by late 2025.
By 2029, Sunkin anticipates the delivery of over 1000 new apartments and townhouses across the entire project.
One of Melbourne's most recently launched developments, Beulah's Brunswick townhouse development Brunswick Established, secured $32.5 million worth of sales at its May launch.
Brunswick Established comprises 23 two-storey townhouses and has become one of the fastest-selling projects in Brunswick. Its design focuses on sustainability and customizability, featuring Beulah’s ‘Tailored Living’ initiative.
The development is now 65 per cent sold, with two, three, and four-bedroom heritage townhomes priced from $1.444 million.
Mirvac has seen interest at their nearby Brunswick apartment development, Prince & Paraderticularly from the local owner-occupier market who work in the medical industry and academia.
Located near Princes Park, the development's proximity to local hospitals and prestigious universities like Melbourne University and RMIT has driven interest.
Mirvac’s reputation as an ASX-listed developer with a history of quality developments further boosted confidence in the project.
Melbourne also saw several developments secure approval in May, the biggest being the 42-level tower at 623 Collins Street by Sterling Global.
The $520 million residential and lifestyle hotel development at 623 Collins Street designed by Carr Architects will include 175 apartments above a 229-room hotel, occupying the heritage podium levels.
The project will also offer 2,717 sqm of commercial space and a fine dining restaurant, enhancing lifestyle options for local workers, residents, and travellers.
National apartment developer Sun Property Group led the boutique market for approvals. They were signed off the deliver its second Melbourne project in the affluent Toorak area.
The new development at 226-228 Williams Road will feature 18 high-end apartments, 10 two-bedroom apartments, four three-bedroom apartments, and four penthouses.
The project, designed by Cera Stribley, is situated near Hawksburn Train Station and the 59 Tram, and will include landscaping by Jack Merlo, retaining a prominent Smooth Bark Apple Tree on site.
Busy developer Wickton were also approved for a small development, this one mixed-use and in the Hawksburn Village precinct, near South Yarra and Prahran.
The project at 387-403 Malvern Road will feature luxury apartments, strata offices, and ground-level retail, including premium hospitality spaces. Seven two and three-bedroom apartments will occupy the top two levels of the building.
