Melbourne Market

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Beulah executive Adelene Teh has said her group’s focus on downsizers and owner occupiers saw its Melbourne projects largely protected from the drop-off in foreign buyers.

“Australia has shown great resilience throughout the pandemic and this will be attractive to people who are looking to move,’’ Teh told a round table forum attended by some of the nation’s top developers hosted by The Australian for The List— Australia’s Richest 250.

William Deague, the chief executive of the Melbourne-based Deague family, William Deague, noted the apartment market had been transformed by policy changes before COVID, now followed by the loss of Chinese investment and immigration.

“I don’t think the future is just punching these little towers straight up, 500 or 600 (units) at a time. “It’s got to be more thought out than that,’’ he told the forum.

[smartcode_project:default project_id=27728]

Melbourne developer Tim Gurner suggested developers were “kidding themselves” if they launched apartment projects of 300 units or more in Melbourne.

Gurner not only expressed concern about the collapse in immigration caused by the COVID-19 pandemic, but had fears about the Chinese government taking capital away from Australia, which would mean a “complete systemic change to our market”.

“It doesn’t matter if you’re selling high end in Toorak or wherever you are, it still affects you. 

“The big difference we’re seeing is the investment apartment, the 300 apartment stuff. I mean, you’d be kidding yourself to try to get something off the ground today.”

Sam Tarascio, managing director of the Salta Properties group, said there was a rental shortage before the onset of COVID, but it had “vanished”.

[smartcode_project:default project_id=5559]

“We’ve got a huge oversupply of apartments available to rent. Rents have gone down — 30 to 40 per cent in some cases.”

Tarascio also noted apartment construction costs were rising 5 per cent a year.

“And we can‘t do anything about it." he said.

Last month it was reported Melbourne’s 2040 population will have half a million fewer people than forecast as the coronavirus pandemic closed the door on migrants.

A special feature from the developer roundtable event will be published in The List in The Weekend Australian on Saturday. 
 
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Beulah executive Adelene Teh said her group’s focus on downsizers and owner occupiers saw its projects largely protected from the drop-off in foreign buyers

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