City Beat October 2024: Units fare better than houses in soft Melbourne property market
Melbourne's soft property market continued over September, but there's better news for units than their is for houses.
Unit values did grow, a modest 0.1 per cent in contrast to house values, which declined -0.2 per cent, CoreLogic's Monthly Index showed.
Unit values are however -0.5 per cent down over the September quarter and -1.6 per cent down so far in 2024.
Units generally are performing better than houses across the country, with six of the eight capitals seeing unit values rise by more than house values over the quarter.
The median value of units in Melbourne now sits at $612,000.
What happened in Melbourne's off the plan apartment market in September
Confidence is building Melbourne's off the plan apartment market, with September being marked with several exciting developments and project launches from Hawthorn and South Melbourne and as far as Safety Beach on the Mornington Peninsula.
Milieu announced it saw a strong response at Elsternwick Gardens, its new garden-centric community on the site of the former ABC Studios in Elsternwick.
Their VIP open saw a huge uptake of apartment reservations, to a broad range of buyers. Milieu also had some repeat purchasers attend the opening of the display suite.
Elsternwick Gardens has attracted strong interest due to several unrepeatable components, none more obvious than the location of the prime 11,740 sqm site which neighbours the historic Rippon Lea Estate.
Read more: Milieu's Elsternwick Gardens development gains momentum following successful VIP launch
In keeping with new nature-focused neighbourhoods, Hamton Property Group secured approval for their latest precinct-style residential project in Hawthorn.
Located on a former University of Melbourne site, the development will feature a new garden community comprising 365 residences across six low-rise buildings.
The development includes a mix of apartments and townhouses, along with 5,500 sqm of publicly accessible green space and a new retail village.
The project is set to significantly transform the Hawthorn landscape and is one of the largest to be approved under the Allan government’s accelerated Development Facilitation Program.
Golden Age Group also saw their luxury Bayside townhouse development approved, located on the site of the former Xavier Junior School site at 47 South Road, Brighton.
This 3.3-hectare site will be subdivided into 14 individual lots, with plans to deliver 84 new homes.
The development is expected to provide much-needed housing in the area, contributing to both economic growth and community development.
Golden Age Group's director, Damien Hehir, emphasised the importance of this project in the continued expansion of Brighton's housing market.
Read more: Victorian Planning Minister approves Golden Age townhouse development in Brighton
There was further movement in Brighton in September as developer Primeland revealed its plans for the former Brighton Savoy Hotel at 150 Esplanade.
The $25 million plans are for a luxury apartment development that will replace the 1900s-built hotel that was first a private residence before becoming a hotel in 1959.
The 3,386 sqm corner site at 150 Esplanade, opposite the famous beach, had been owned by the Lee family for 55 years before it was acquired by Primeland as part of its growing $1 billion portfolio which includes assets across hotel, residential, and mixed-use sectors.
The plans by Toorak-based Kennon Architects are for two separate three-level buildings with 14 luxury apartments.
Read more: First look exclusive: Former Savoy Hotel, Brighton apartment redevelopment revealed
Luxury developments and releases too were timed for September.
Developer DCF Property launched First Light, just 30 apartments lcoated in South Melbourne's popular Domain Precinct.
The new tower at 28 Albert Road will be a mixed-use building with luxury apartments sharing the building with an 88-room Nu by YOO Hotel, the brainchild of property entrepreneur John Hitchcox and French industrial architect and designer Philippe Starck.
The collaboration continues in the two ground-floor restaurants. One will be run by acclaimed chef Scott Pickett, from Chancery Lane and Estelle, and the other by restaurateur Jason Lau.
The apartments have been designed by French architect Léo Terrando, whose approach was to blend global design principles with Melbourne's charm, using materials like brushed nickel, charcoal oak and travertine flooring.
Penthouse collections were released in two of Melbourne's newest landmark towers.
OSK Property revealed their Penthouse Collection at BLVD, the latest stage of the massive $3 billion Melbourne Square precinct in Southbank.
Designed by renowned interior designer David Hicks, the eight penthouses range from 180 sqm to 471 sqm and start at $4.46 million, with one already sold for $6 million.
Hicks' 'East meets West' design theme merges Eastern minimalism with Western luxury, offering unique, high-end living spaces.
Read more: Luxury penthouse collection by David Hicks revealed at BLVD Southbank
R.Corporation also released its penthouses atop R.Iconic in South Melbourne. We took a tour of the recently completed building, its significant amenities, and the penthouses on offer.
The open-plan penthouse collection flows seamlessly from the kitchen—featuring Gaggenau appliances, a butler’s pantry, and a stunning marble island bench—into a spacious living area that opens up to a generously-sized balcony with expansive views.
Exclusive to sub-penthouses, penthouses, and townhouses is The Horizon Lounge, offers breathtaking bayside views and a communal kitchen for private gatherings.
Read more: Urban's video tour of R.Iconic's luxury penthouse collection in South Melbourne
A rare opportunity also presented itself down on the Mornington Peninsula with the launch of Osprey Safety Beach, and award-winning development by Figurehead Constructions.
Osprey Safety Beach comprises just 18 two and three-bedroom apartments, and are as competitively priced as any new apartment in the burgeoning community.
Projects by Buxton Director Heath Thompson is already seeing demand from several buyer camps.
"Where Osprey is located and the configurations it has on offer, it can suit several uses, which is attracting several different buyer types," Thompson says.
"Local downsizers who either live in the immediate area or those who have large landholdings in some more remote areas of the Mornington Peninsula who want to be closer to the water, have been the most active buyers so far.
"Then there's those from Melbourne who want a lock up and leave, low-maintenance weekender that they can use themselves or lease as a holiday let when not in use."
