City Beat March 2024: What's happening in the Melbourne off the plan apartment market?
The Melbourne unit market bounced back in February as values in Australia's two largest capitals look to be trending up again.
The unit market in Melbourne outperformed houses, with units up 0.2 per cent over February compared to the house market up just 0.1 per cent.
CoreLogic Research Director Tim Lawless said that although growth rates in Sydney and Melbourne home values have levelled out, the monthly trend has accelerated, with Melbourne emerging from a three month slump of negative monthly movements to record a subtle 0.1 per cent (dwelling) rise in February."
Sydney dwelling values also moved back into positive territory over the past two months after recording a subtle decline in November and December.
“Potentially we are seeing some early signs of a boost to housing confidence as inflation eases and expectations for a rate cut, or cuts, later this year firm up,” Lawless said, adding that an improvement in consumer spirits has historically played out positively for housing activity, with higher sentiment generally accompanied by a lift in home sales and vice versa.
"Westpac and the Melbourne Institute reported a 6.2% lift in the consumer sentiment index for February, taking the reading to the highest level since June 2022."
What's happening in the Melbourne off the plan apartment market?
There were three major apartment launches over February, scattered throughout Greater Melbourne and even a rare development down on the Mornington Peninsula.
That was a boutique development in Rye, on its way to the popular Portsea and Sorrento hotspots. Jellis Craig Projects Director Stephen Bowtell says the project was received by the market on the launch late last month, particularly by inner-city dwellers who were looking for a lock up and leave weekender on the Peninsula.
"You're in the heart of the Peninsula, 50-metres to the sand and across from the Rye Sailing Club. A house down on the Mornington Peninsula doesn't get you that," Bowtell said.
Each of the one, two and three-bedroom apartments come with their own beach box-style storage spaces. Given the proximity to the sand, they are in essence a beach box.
Developer Curtis York, founded by Nick Peters and James Way, is behind 2135 Point Nepean Drive which has been designed by Cera Stribley Architects.
Prominent inner-city builder developer, PACE, launched their highly anticipated Fitzroy apartment development, Fabbrica, toward the end of February.
They had SJB design a development of 78 one, two, and three-bedroom apartments and townhouses which integrates the industrial past of the site, once home to the Argyle Shirt Factory and Life Savers Confectionery Company, and connects to the contextual fabric and character of Fitzroy.
PACE Sales Director Ash Bramich had a number of groups through, with a number of buyers wanting to customize their floorplans toward the upper end of the market.
"Some are wanting to move some walls around, taking a few metres from a living room to make a bedroom bigger," Bramich says.
"There's a small window that buyers can do that. Those who are downsizing in particular are very detailed-oriented with how they want the floorplan configured."
The development provides a deliberate emphasis on larger apartments and offers personalisation options for buyers with two distinct colour schemes by Winwood Mckenzie or Bergman & Co.
Fabbrica Fitzroy also features a number of amenities including an 800 sqm rooftop with views of the CBD, a bookable private dining room, communal kitchen, and lounge designed by Winwood Mckenzie, as well as dedicated work-from-home zones.
Gamuda Land launched their St Kilda project Fareham at 95 St Kilda Road in February, which will bring another 78 apartments to the undersupplied Melbourne market.
The 18-level, development approved building was designed by BayleyWard and features a state-of-the-art fitness centre and a rooftop garden.
They're expecting completion in late 2026.
