City Beat May 2024: Melbourne unit growth outstrips houses for second straight month

For a second month in a row, Melbourne's unit market outperformed houses, a trend now being noticed across the majority of capital cities throughout Australia.

Values of units in Melbourne (which incorporates both apartments and townhouses), grew by 0.1 per cent, according to data from property data analytics firm CoreLogic's Monthly Hedonic Index.

While only modest growth, houses in Melbourne went backward -0.2 per cent. Melbourne units are outperforming houses over the rolling quarter, up 0.4 per cent in the last three months compared to a -0.3 per cent decline in the house market.

The median value of units in Melbourne currently stands at $613,000.

What happened in Melbourne's off the plan apartment market in April?

While Melbourne is continuing to suffer from chronic undersupply of new property, there was a bit of activity over April with new stock coming to market.

Beulah shifted their attention to Brunswick having now sold over 80 per cent of their landmark STH BNK by Beulah tower. They unveiled a new boutique townhouse development, Brunswick Established, which they're pitching as "future-proofed and multi-generational."

Comprised of 23 two-storey townhouses, Brunswick Established offers multiple typologies of townhomes to suit different living requirements, allowing residents to grow in place - the majority include ground-floor bedrooms for accessibility while others provide a detached room separated by a courtyard. 

Spanning a large 3,705 sqm site and designed by leaders in social and sustainable architecture Six Degrees Architects, Brunswick Established will also feature verdant common spaces inspired by traditional London Mews design, including a private laneway, landscaped courtyards and rooftop terraces.

There was a rare launch of new apartments in Hawthorn in April. The new Riversdale Road project, Sculpt, is the suburb's only off the plan apartment development currently in the market. 

Crafted in collaboration with acclaimed design teams Mim Design, Parallel Workshop, and Jack Merlo, Sculpt comprises just 18 two, three, and four-bedroom apartments in a low-rise building near Fairview Park.

Caulfield North saw the launch of Reverie which sold 30 per cent of its 34 two and three-bedroom apartments quickly.

Award-winning BG Architecture have teamed with acclaimed interior design firm, Hecker Guthrie, to design Reverie, divided into three levels; The Penthouse Level, The Sanctuary Levels, and The Podium — offering panoramic bay and city views in the Penthouse Level to spacious balconies overlooking Caulfield Park and the city skyline in the Sanctuary Levels.

Bensons Property also has a new project in the market. Drummond House in Carlton, comprising a mix of two, three and four-bedroom apartments across 13 levels, will be Carlton's first fully electric building.

Drummond House will target an 8.7-star energy rating, aligning itself with modern sustainability standards.

Lendlease revealed their latest stage of Collins Wharf off the back of the success of its most recent apartment tower, Regatta, which is now 80 per cent sold.

Warren and Mahoney have been engaged again to design their new tower, Ancora, a 28-level tower with 276 one, two and three-bedroom apartments that offer uninterrupted views of either Victoria Harbour towards the city or the Yarra River across to Port Phillip Bay.

The Premier Collection comprises 27 residences across a range of townhouses, penthouses, and larger-scale apartments that will soon become available.

Ancora residents will enjoy a hotel-style lobby with concierge service, a private dining room to entertain guests, and the lush, landscaped surrounds of two rooftop terraces located at a level for and level 16 with panoramic views, plus a winter garden.

While the supply of new apartments is still nowhere near enough to meet the demand, several new projects on the horizon will bring some more supply, none larger than a four-tower development in the Fishermans Bend precinct.

The project, which is being managed by Citinova, features a four-tower development that will bring over 1000 apartments to the chronically undersupplied Melbourne market.

The five-stage project will also include an unencumbered 3,075 sqm public open space.

Read more: First look exclusive: Citinova plot multi-tower development in Fishermans Bend

Southbank is also set for a new tower with plans filed for a new 25-level tower.

Fender Katsalidis 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.

In the medium-density space, prominent developers Abadeen and Carpe Group were both active.

Abadeen lodged plans for their second apartment development in Melbourne having expanded from Sydney's Lower North Shore late last year.

Read more: First look: Abadeen lodge plans for second Melbourne apartment development

Currently selling their debut project Maléa in Malvern where they've recently appointed Brompton Construction to build the boutique project of just seven parkside apartments, Abadeen, led locally by Andrew Leoncelli, has filed for a four-level apartment development housing 26 apartments.

They had Carr Design design the four-level building to curve around a Smooth Bark Apple tree, immovable as it's listed as a national trust significant tree.

Fellow boutique developer Carpe Group secured the green light for two projects in Bayside. They're soon to launch The Coterie, 25 apartments in Sandringham, and 18 apartments in Hampton.

The Coterie will go first. That will home two and three-bedroom apartments in a Warren & Mahoney-designed building at 49-51 Abbott Street, near Sandringham Station

Carpe's other Bayside project, in Hampton, is another that's all about the location.

Strategically located one street back from the vibrant Hampton Street with all the retail, hospitality and Hampton Station. Carpe will launch 18 apartments at 8-10 Ocean Street, designed by Martin Friedrich Architects who will also handle the interiors.

Read more: Carpe Group secure green light for two Melbourne apartment developments