Melbourne city has recovered strongly post-global pandemic; an increase in population and international students is supported by strong infrastructure, driving an increase in rents and demand for new apartments in the CBD.
A recently published report by Urbis looking into the Melbourne CBD outlook revealed that the City of Melbourne is forecast to require an additional 30,000 dwellings by 2027. The apartment pipeline for Central Melbourne equates to 8,500 dwellings at present, which does not meet this forecast demand. With the pipeline constrained, newly built apartments within Melbourne’s CBD will likely be in high demand
Rising interest in Melbourne city apartments
Data from Domain suggests it has never been harder to find a rental in Australia, with the vacancy rate and number of properties available for lease falling to a record low. Short supply has been a major contributing factor with the national volume of properties listed for tenants having almost halved over the past 12 months.
Melbourne has experienced the longest stretch of rent growth since 2007 and 2008. Figures have been rising for five quarters in a row, with the Melbourne rental vacancy rate currently at 1.4%, which is close to record lows and well below its peak of 5.6% in December 2020.
Further to that, apartment prices have continued to appreciate in Melbourne over the past decade. In June 2022, the city registered a median apartment price of $630,000, higher than Brisbane, Adelaide, and Perth.
Apartment prices have exhibited healthy long-term growth over the past decade, appreciating at an average annual rate of 4.0%. New apartment buildings are attracting a premium over the market (11%-13%), with a diminishing pipeline of new stock in the next five years for central Melbourne.
As the City of Melbourne’s population is forecast to grow annually by 3.1% to 2040, new apartment development will be in high demand. CBD residents benefit from proximity to office space, amenity, parks and public transport within walking distance.
How do you spot quality residential apartments?
If you’re interested in buying a Melbourne CBD apartment, here are some factors that could be worth considering, in terms of both lifestyle and investment potential.
Melbourne is a vibrant and exciting city, renowned for its laneway culture and its eclectic mix of restaurants, bars and galleries. The city centre is characterised by tram lines and tree-lined streets with a combination of new and old architecture. Extensive parklands and green spaces provide an escape from the hustle and bustle city living, as does the Yarra River to the south-east of the CBD.
Melbourne CBD also hosts an array of retail and entertainment options, including the central CBD retail core of Bourke Street Mall, Paris End of Collins Street, Melbourne Central and Emporium. This group of precincts are home to a variety of modern lifestyle and luxury brands, located in the heart of the city. Marvel Stadium is located on the western edge of Melbourne’s CBD, readily hosting AFL games and major sporting events, concerts and other large functions.
Transport & Walkability
Melbourne’s CBD is well serviced by a network of trams, buses, trains, footpaths and designated bike paths. The west end is serviced by Flagstaff Station and Southern Cross Station, within the City Loop, providing convenient connectivity to the rest of Greater Melbourne and regional Melbourne stations.
When looking for a Melbourne CBD apartment it is important to consider its proximity to public transport, particularly if you don’t own a car.
West Side Place is located directly opposite to Southern Cross Station, which provides easy access to trains that service both Greater and Regional Victoria. Tram stops located on Spencer Street and Lonsdale Street also form part of Melbourne’s Free Tram Zone, making it easy to get around the city centre.
If you prefer to explore by foot or bike, Melbourne is a walking-friendly city, with footpaths, laneways and bike paths all readily available.
One of the key benefits of luxury apartment living, is the vast array of amenities on offer from many new property developments. Amenities are additional comforts that provide residents with spaces in which to entertain, exercise and relax beyond the apartments themselves. They include the likes of gyms, swimming pools, lounges, cinemas and more.
When looking for luxury apartments for sale in Melbourne, its important to look for developments that include amenities most relevant to your lifestyle. If you work from home, consider a precinct that provides meeting rooms and/or libraries. If fitness is a priority, look for wellness spaces and if entertaining is a priority, look for somewhere that offer private dining rooms in which to host larger groups.
West Side Place offers multiple levels of luxurious amenities to its residents, and they have been curated to create a sense of lifestyle, community and wellbeing.
Some of the amenities include heated swimming pools, fully equipped gyms, cinemas, dedicated wine cellars and dining rooms, tranquil garden terraces with BBQ facilities, spacious yoga and pilates studio, library and plenty more.
Look for developments that offer a variety of apartment layouts, as you will increase your chance of finding something that best suits your needs.
Many developments now offer 1, 2 and 3 bedroom apartments, with extras such as studies and balconies often available in the product mix. Consider the likes of size, storage, bedroom and bathroom placement, living area and natural light. If having views are another important factor, consider the orientation of the apartment and proximity to nearby buildings.
It’s also important to think about the inclusions of the apartment. Look for apartments with good quality appliances, fixtures and fittings, flooring and window furnishings. Purchasing an apartment from a developer with a solid track record and reputation can create peace of mind, knowing previous purchasers are happy with their investment.
Buying an apartment in Melbourne soon?
For investors looking to take advantage of the competitive property market, the Melbourne apartment market is certainly worthy of consideration, and with new apartments ready to move in now, West Side Place represents a great opportunity to immediately get into the Melbourne market.
Apartments feature an abundance of natural light, earthy colour palettes and top-quality fixtures and fittings. Also benefit from West Side Place’s environmental initiatives, including double glazing, energy-efficient lighting and onsite electric car charging.
Located opposite Southern Cross Station and within walking distance of some of Melbourne’s most iconic landmarks, universities and shopping precincts makes it an ideal location for owner occupiers and investors alike.