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Melbourne’s Southbank to gain striking new apartment tower amid housing shortage

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A new 56-storey apartment tower is set to rise in Melbourne’s Southbank, aiming to address the city’s critical housing shortage amid a decade-low in apartment approvals.

The $220 million Moray House project, designed by architects Rothelowman and interior designer David Hicks, has already secured $150 million in pre-sales.

James Maitland, Managing Partner of developer Salvo, said the project comes at a crucial time for Melbourne’s housing market.

“There is limited developable land left in Southbank and the CBD fringe,” Maitland said.

“Coupled with changes to planning controls, apartment supply is likely to be constrained for the foreseeable future.”

The 180-metre tower will feature 305 apartments, including one, two and three-bedroom configurations, as well as two double-storey penthouses.

Maitland highlighted the need for policy changes to boost housing supply.

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“We’re keen to see the right investment and planning settings that provide confidence for developers and buyers regarding delivery of key infrastructure in urban renewal precincts to enable multi-unit developments to do the heaving lifting to boost housing supply,” he said.

The development comes as Melbourne faces a significant housing shortfall. Data indicates that over 16,000 new dwellings are required in the City of Melbourne alone over the next three years to meet demand.

Charter Keck Cramer reported that only 2,600 new apartments were launched in Melbourne in 2023, the lowest number in a decade.

Maitland suggested potential solutions to accelerate housing delivery.

“Revisiting off-the-plan stamp duty exemptions and reducing taxes on foreign investors would go some way to speed up the much-needed delivery of housing and help ease the rental crisis,” he said.

The Moray House project is part of Salvo’s $3 billion development pipeline, which includes major projects in Fisherman’s Bend and the historic Pentridge precinct in Coburg.

Construction is expected to be completed in late 2026, with two-bedroom apartments ranging from $639,000 to $765,000 and three-bedroom apartments starting from $1,075,000.

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