Review

With substantial forecasted population growth, and the North West Metro, Castle Hill is becoming a sought-after suburb. Offering genuine value compared to more established apartment markets like Chatswood, St Leonards and Macquarie Park, it is attracting first home buyers, investors, downsizers and upsizers. Due to complete Spring 2024, Grand Reve has been billed as the most prestigious development ever offered in the Hills District.

Hear from Sydney local Gerry, who recently purchased his new home at Kassis Homes' Grand Reve as well as Josephine, who recently purchased two new properties at Kassis Homes' Grand Reve.

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*Dasco has been rated 4.5 gold stars in the NSW Government's Rating System, iCIRT, which helps prospective buyers more easily identify building professionals who have a proven track record, supported by objective evidence of their past capability to deliver buildings you can trust. The more stars, the more confidence your construction industry professional is likely to deliver a reliable outcome.

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&nbsp;

Hear from Sydney local Gerry, who recently purchased his new home at Kassis Homes' Grand Reve as well as Josephine, who recently purchased two new properties at Kassis Homes' Grand Reve.


Olivia Round

Grand Reve Recent Purchaser Testimonials from Josephine & Gerry

The Andrews Labor Government is getting on with a package of reforms to the planning system to clear the backlog of approvals and build more homes, faster.

Right now, the system just isn’t working like it should – and decisions aren’t getting made fast enough. Over the last year, the number of dwellings approved across the state fell by 26.1 per cent.

At a council level, there’s a backlog of around 1,400 planning permit applications for multi-unit housing that have been sitting with councils for more than six months waiting for a decision. Some 550 of those applications have been waiting for more than a year.

Of these, 78 projects have a development cost of more than $10 million – and would deliver around 4,900 new homes.

Premier Daniel Andrews said "building, buying, renovating or renting shouldn't be this hard."

"We need to build more homes, with the best design standards, where people want to live. And that means going up and out – not just out," Mr Andrews said.

Minister for Planning Sonya Kilkenny said&nbsp;Victorians deserve a planning system that works with them – not against them.

"It should be a clear, transparent and accountable system – because Victorians deserve to know who is planning our city and state.”

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New data shows Yarra Council progressed just 38 per cent of all applications within the required timeframe – with an average processing time of 188 days.

Stonnington City Council rejected almost one in five planning permit applications – often citing&nbsp;‘neighbourhood character’ when matters are heard at VCAT.

The status quo is not an option. Unless we take bold and decisive action to build the homes people need now, Victorians will be paying the price for generations to come.

We’ll begin the work to clear the backlog of 1,400 housing permit applications that have been stuck with councils for more than 6 months.

By November, we’ll have a&nbsp;dedicated&nbsp;team up and running to work with project proponents, local councils, and referral agencies to resolve issues delaying council decision-making – to avoid projects ending up in VCAT and to get homes built.

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The unit in the Department of Transport and Planning will rapidly review multi-unit developments with development costs above $10 million. Once we have a clearer picture of projects and if decisions keep lagging, the Minister for Planning won't hesitate to call them in.

We’ll expand Victoria’s&nbsp;Development Facilitation Program&nbsp;(DFP)&nbsp;–&nbsp;making the Minister for Planning the decision maker for significant residential developments that include affordable housing.

The expanded DFP will streamline the planning process for medium to high density residential developments that meet the set criteria: constructions costs worth at least $50 million in Melbourne or $15 million in regional Victoria, and delivering at least 10 per cent affordable housing. This will include new build-to-rent projects.

If these projects do not meet this criteria, the Minister for Planning can still approve a project if it delivers more than 10 per cent affordable housing, or if it demonstrates best practice design and environmental standards – working to support more longer term rental options for Victorians.

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Changes to the DFP will mean around 13,200 additional homes will be brought to market that would otherwise be delayed – and it’ll cut application timeframes for these types of projects from more than 12 months down to four.

The Government will also streamline assessment pathways, creating a range of new&nbsp;Deemed to Comply&nbsp;residential standards for different types of homes.

This will speed up decision-making immediately. Fourteen of the current residential development standards will be codified – including north-facing windows objective, overshadowing open space objective and street setback.

The remaining 39 will be reviewed and finalised by September 2024, following targeted consultation. Deemed to Comply matters wil no longer be considered by VCAT.

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These changes will mean council planners can quickly approve permits for houses that meet the residential standards – and they‘ll only assess aspects of a permit that don’t comply with those standards.

We’ll expand the&nbsp;Future Homes&nbsp;program to encourage more new builds, creating more ready-made architectural designs which can be purchased by developers and adapted to a site through a streamlined planning process.

Currently,&nbsp;Future Homes&nbsp;are plans and processes are only available in the City of Maribyrnong. We‘ll expand the areas where they can be used – extending&nbsp;Future Homes&nbsp;to all general residential zones where development is within 800 metres of an activity centre or railway station.

We’ll also make changes to the types of homes that require planning permits. Single dwellings on lots bigger than 300 square metres, and not covered by an overlay, will no longer require a planning permit.

Single dwellings on lots smaller than 300 square metres, where an overlay doesn’t exist, will be ticked off within 10 days through VicSmart.

For many, the burden of getting a planning approval has put building a second small home, also known as a granny flat, in the too hard basket. We’ll make it easier to build a second small home on your property, with dwelling garden units exempt from the permit process if they’re less than 60 metres.

We’ll also introduce more permit exemptions for single dwellings for things like extensions to sheds and carports.

We’ve already strengthened Victoria’s apartment design standards, with previous reforms improving the internal and external design of new builds. But we know there’s more to do, so we’ll strengthen the existing standards to make sure they deliver the variety of homes Victorians want into the future.

Our clear new standards will ensure appealing, comfortable, sustainable, and fit-for-purpose homes. Stronger design guidance will mean more apartments better suited to families, better accessibility and more functional internal spaces and storate.

Activity centres are prime locations for more housing supply, and more housing choices for Victorians – given how close these centres are to jobs, transport, community spaces and other essential services. But we’ve heard from industry that the rules for individual permits can be too slow, causing bottlenecks with approvals.

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We’ll introduce clear planning controls to deliver an additional 60,000 homes around an initial 10 activity centres across Melbourne by the end of 2024, with the Minister for Planning taking over the planning work from councils in these areas.

Activity centre plans will guide investment in the things a growing suburb needs like community facilities, public spaces and parks. The program will also consider the best way to incentivise more affordable housing.

The initial 10 activity centres identified are Broadmeadows, Camberwell Junction, Chadstone, Epping, Frankston, Moorabbin, Niddrie (Keilor Road), North Essendon, Preston (High Street) and Ringwood.

Over the longer term and as part of a new plan for Victoria, we’ll look to extend these planning controls to other activity centres across Melbourne, and possibly regional Victoria – boosting housing supply and giving local communities greater certainty over how their suburbs grow.

The Minister for Planning will also lead the work to overhaul the&nbsp;Planning and Environmental Act 1987&nbsp;to create a modern, fit for purpose planning system – with the review’s timeframes to be established in the coming months.

To support the changes above and give industry greater certainty, the Department of Transport and Planning will bolster its resources in the coming months – including by bringing on 90 new planners.

Premier Daniel Andrews said "building, buying, renovating or renting shouldn't be this hard."

Joel Robinson

Andrews Labor Government to ramp up apartment approvals across Melbourne

Developer VIMG has finalized plans for its Chatswood site.

Having been back and forth with the Willoughby Council to achieve the ideal design outcome, VIMG have submitted a development application for two towers with 193 apartments.&nbsp;

DKO have designed the 90 metre towers which will rise from a central public plaza with retail and commercial tenancies and extensive landscaping by Land And Form Studios.

The project team has undertaken a collaborative engagement process with council including two pre development application meetings and an additional Design Excellence Review.

DKO won the design competition held in April, but the jury requested&nbsp;the scheme be resubmitted as they felt the building could be improved by further consideration of how the 'tree as a tower' conceptual metaphor is ultimately expressed.

<img alt="Chatswood" data-entity-type="file" data-entity-uuid="5d455ce8-3af3-4f1d-a933-7747fe7ea2fa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-09-15%20at%2011.16.19%20am.png?VersionId=AR02dKdgojcDrfZg2xsztxdocyQNDbFL" />

DKO said in their Architectural Design Report that they drew inspiration from the wider cultural landscape.

"Thorough understanding of the local community, we have established a seamless connection between the dwellings and the broader context," the architecture firm noted.

"This connection serves as a constant reminder to the residents of their integral role in the larger community. By prioritising this sense of place, our design proposal creates a harmonious and cohesive relationship between the built environment and the natural surroundings."

<img alt="Chatswood" data-entity-type="file" data-entity-uuid="5796052a-b809-4255-be15-de3dcb0f47bf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-09-13%20at%203.54.58%20pm.png?VersionId=xGwM2gaDdUVpoYNAQRHo8FRmrQdZA16W" />

DKO said the tower form is a refined structural extension of the trunk of the tree.

"The fine detailing of rounded structural columns softens the rigid structure, yet anchors the building to the ground. The podium and commercial spaces are expressed as a sedimentary sandstone stratum on which the finely crafted towers sit. The expression is an acknowledgment of place, and the connection of the residents back to the ground."

There will be a landscaped podium roof for residents, with an outdoor&nbsp;covered yoga and the pool deck is positioned to take advantage of the north-facing aspect of the terrace.

The two and three-bedroom apartments are 15 to 20 per cent larger than Apartment Development Guideline minimums, the documents suggest.

VIMG had forecasted 300 apartments on the site. They said the&nbsp;location of the project is at the core of the area, within walking distance to the train station and a large shopping mall, as well as in close proximity to high-quality primary and secondary schools.

First look: VIMG plot two-tower Chatswood apartment development, Nelson Place

Property advisory firm Charter Keck Cramer believes the price gap between house and units in Melbourne to narrow once again having blown out over COVID.

In&nbsp;their&nbsp;State of the Market Report H1 2023, Charter Keck Cramer said Melbourne is not experiencing normal housing market conditions.

"This means that there will continue to be extraordinary price and rent changes with more unique levels of risk and opportunity compared to historical patterns," CKC advised.

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They noted that pre-COVID, the long-term price gap between houses and units was 34 per cent, however the median house price in June 2023 was $919,000 for houses compared to $601,000 for units. That's a gap of 53 per cent, which CKC said was "extremely large."

They believe, given&nbsp;rate rises and diminished purchasing capacity for buyers, that additional buyer demand will be driven into the unit market which stands to support price growth and overall apartment price recalibration in new apartments in many locations in Melbourne.

They also expect rental price growth to be around for some time yet, which will attract investors.

"Given the current supply vs demand imbalance, it is reasonable to expect elevated rental growth in the rental market over the next three to four years," the report noted.

"Vacancy rates are anticipated to remain very low given the shortage of supply of dwellings which are struggling to be mobilised combined with the substantial increase in demand for dwellings. Renters are once again having to make lifestyle choices about the types of dwellings (houses, townhouse or apartments) they occupy. They are also starting to group up (to share the rent) which was a pre-pandemic trend which is anticipated to continue in the absence of the delivery of new rental stock."

Vacancy rates across all housing markets in Melbourne are less than three per cent.

Addressing the well documented supply vs demand imbalance, CKC's analysis showed only 4,400 apartments were launched to the market in FY23, which represented the lowest number of launches recorded over the past decade and -82 per cent below the peak levels in FY16. Constructed start on 4,600 apartments in FY23, which was also the lowest number of apartment commencements in the past decade.

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Completions in Melbourne Metro were also below trends for a second consecutive year.

"As the market continues to suffer from the lagged impact of COVID, less than 10,000 apartments have been delivered, a decline of -40 per cent compared to the pre-pandemic years."

There are just 10,000 apartments currently under construction and due for completion in FY24 to FY26.&nbsp;CKC believe&nbsp;Melbourne needs&nbsp;to build between 15,000 to 18,000 BTS and BTR apartments every year to accommodate the growing population. They also however believe the government is "substantially underestimating population growth."

"This misalignment between supply and demand is anticipated to remain an ongoing issue, and depending on the responses by Government, could potentially be exacerbated over the balance of the decade."

There's a further 9,200 apartments currently being marketed on top of the 10,000 under construction, but CKC suspect a significant proportion of these projects are likely to be delayed given elevated construction costs and a challenging pre-sale environment.

"We continue to expect Melbourne’s apartment market to remain severely under-supplied as high levels of net overseas migration (NOM) absorb new stock that is able to be mobilised."

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CKC believe there are opportunities for developers&nbsp;those developers that are able to proceed with construction at present.

"It is very clear that the buyer and renter markets are seeking new stock but also certainty with respect to both costs and timing. These developers will be delivering completed stock into a market with a shortage of new BTS and BTR apartment supply over the next 2 years and will have the opportunity to be rewarded when providing desirable stock."

CKC are looking ahead to what is anticipated to be some major planning system announcements this month through the State Government’s Housing Statement.

"In summary, it is very reasonable for industry to expect that over the next two years, weekly rents will continue to increase at above average levels of growth and prices of new BTS apartments will recalibrate upwards across most markets. Once the market finds a new equilibrium we anticipate that both rent and price changes will revert to longer-term trends."

In their State of the Market Report H1 2023, Charter Keck Cramer said Melbourne is not experiencing normal housing market conditions

"New Melbourne apartments will recalibrate upwards across most markets": Charter Keck Cramer State of the Market Report

Ellipse Property&nbsp;has appointed multi-award-winning, iCIRT-rated construction company Decode Group&nbsp;to build Stage One of its $850 million masterplanned <a href="https://www.urban.com.au/developments/castle-hill-nsw">Castle Hill</a> community, Carrington Place.

The <a href="https://www.urban.com.au/new-apartments/carrington-place-36-carrington-road-castle-hill">huge five-building project at 36 Carrington Road</a>, opposite the Hills Showgrounds Metro Station and in the heart of <a href="https://www.urban.com.au/developments/castle-hill-nsw">Castle Hill</a>, will comprise 771 apartments when complete in 2032.

The first stage,&nbsp;Atrium, will home 151 of those apartments within one eight-level building which will also home rooftop recreational spaces with views of the surrounding landscape.&nbsp;Atrium&nbsp;will be the gateway to the <a href="https://www.urban.com.au/new-apartments/carrington-place-36-carrington-road-castle-hill">Carrington Place precinct</a>.

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Founder of Ellipse Property, Sam El Rihani, said their&nbsp;decision to partner with Decode for the construction of stage one at <a href="https://www.urban.com.au/new-apartments/carrington-place-36-carrington-road-castle-hill">Carrington Place</a> underscores a shared mission in delivering excellent built solutions.

“With a proven track record of excellence and reliability, Decode has a history of delivering award-winning residential and mixed-use projects that they are proud to stand behind long after construction completes.

“The attention to detail, commitment to excellence and dedication to quality aligns seamlessly with our vision for <a href="https://www.urban.com.au/new-apartments/carrington-place-36-carrington-road-castle-hill">Carrington Place</a> as the future heart of the <a href="https://www.urban.com.au/developments/castle-hill-nsw">Castle Hill</a> Showground."

Ellipse and Decode have worked together on projects in Homebush and Miranda previously.

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Decode was one of the first 20 businesses to receive a Gold Star iCIRT Rating in NSW. The company was in the very first group to be rated when the rating system was unveiled by the Office of the NSW Building Commissioner in May 2022.

Providing an unbiased and independent review of an organisation, an iCIRT rating is obtained through a thorough assessment of all aspects of a business, aimed at building transparency in the industry and trust with the Australian families and individuals looking to buy-off-plan.

Decode Director Divya Mehta said the appointment for <a href="https://www.urban.com.au/new-apartments/carrington-place-36-carrington-road-castle-hill">Carrington Place</a> was a big step forward for Decode

“Decode is delighted to be appointed as the builder on stage one of the landmark <a href="https://www.urban.com.au/new-apartments/carrington-place-36-carrington-road-castle-hill">Carrington Place</a> master-planned, multi-staged project.

"As one of the largest new residential projects in the Hills District it is a significant step forward for Decode and we’re ready to set the benchmark for modern living in Castle Hill. We are committed to delivering excellence in construction and look forward to working closely with Ellipse to realise their vision of a community focused and sustainable lifestyle with stage one, Atrium."

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Decode recently won the 2023 Urban Taskforce Development Excellence Award in the Mixed-Use Development category for the construction of its Burwood Grand residential project in Sydney’s inner west.

Architectural firms&nbsp;Tony Owen Partners and Stanisic Architects worked in collaboration to design <a href="https://www.urban.com.au/new-apartments/carrington-place-36-carrington-road-castle-hill">Carrington Place</a>, with the main inspiration coming from the Cattai Creek which runs along the western border of the development.

A key feature of the project will be a one-kilometre boardwalk running the length of the Cattai Creek connecting to Fred Caterson Reserve, a 58-hectare local reserve featuring picnic tables, children’s playgrounds, along with multiple sports facilities.

The project will be home to over 20,000 sqm of&nbsp;outdoor recreational space and gardens, conceived by landscape architect Site Image Landscape Architects, making it one of the greenest master-planned communities in the Hills District.

Carrington Place Project Director Joseph Chiha&nbsp;emphasized that <a href="https://www.urban.com.au/new-apartments/carrington-place-36-carrington-road-castle-hill">Carrington Place</a> is envisioned as a multi-staged urban village with a strong connection to nature, prioritizing lifestyle, sustainability, and community.

"The project seamlessly blends with the surrounding nature and aims to become one of Sydney's most sustainable urban communities," Chiha said.

Construction on Atrium is expected to commence in Q3 2023, with completed in Q3 2025. The entire five-stage precinct is due for completion in 2032.

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Decode recently won the 2023 Urban Taskforce Development Excellence Award in the Mixed-Use Development category for the construction of its Burwood Grand residential project in Sydney’s inner west

Decode to construct first stage of $850 million Carrington Place, Castle Hill apartment development

Multi-award winning construction company Decode will lead the build of Dairy Farmers Towers, the <a href="https://www.urban.com.au/developments/newcastle-nsw">Newcastle apartment development</a> by Third.i.

The iCIRT rated and multi-accredited builder, who have built&nbsp; TWT Property Group's Grande Pyrmont Bay Estate in Sydney's Pyrmont, will lead the build of the <a href="https://www.urban.com.au/new-apartments/dairy-farmers-towers-corner-of-tudor-and-hunter-street-wickham">two-tower Wickham development</a>, which will comprise 180 one, two and three-bedroom apartments.

Third.i Co-Founder Luke Berry said Decode’s Grande Pyrmont was a competing development for Third.i’s recently completed luxury townhouse project, Paragon of Pyrmont, and the Sydney construction company made an impact.

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“We were thoroughly impressed with the quality of the build at Grande Pyrmont, and we have wanted to work with Decode ever since," Berry said.

"After reviewing Decode’s projects within Sydney and the surrounding areas, we gained an understanding of the team's ability to deliver a quality product that all stakeholders were proud of.

“Today’s announcement marks the start of an exciting partnership that will see <a href="https://www.urban.com.au/new-apartments/dairy-farmers-towers-corner-of-tudor-and-hunter-street-wickham">Dairy Farmers Towers</a> brought to life for residents and the wider <a href="https://www.urban.com.au/developments/newcastle-nsw">Newcastle community</a>.”

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Decode Chairman and Founder, Sam El Rihani, said they were thrilled to be partnering with Third.i to deliver their vision for Dairy Farmers Towers.

“We are excited and honoured to be partnering with Third.i on a project of this scale and calibre, embarking on our inaugural venture outside Sydney," Rihani said.

"As we forge ahead into this new chapter, we remain resolute in our mission to deliver excellence in construction, and we are eager to set a new benchmark for modern living in the <a href="https://www.urban.com.au/developments/newcastle-nsw">Newcastle CBD</a>.

“With Third.i’s reputation for creating exemplary legacy projects and our commitment to excellence, the project will breathe new life into one of the city’s most iconic locations.”

Situated in the heart of Newcastle’s West End, Dairy Farmers Towers will boast some of the best views of <a href="https://www.urban.com.au/developments/newcastle-nsw">Newcastle</a>, and amenity including&nbsp;communal green spaces, a state-of-the-art gym, an elevated north-facing outdoor swimming pool and sundeck, a wine bar and cellar, as well as an exclusive residents’ only shared work hub.

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As an ode to <a href="https://www.urban.com.au/developments/newcastle-nsw">Newcastle's</a> history, the project will also re-imagine the heritage-listed glass milk bottle and clock towers as part of a pedestrianised, broader public art installation.

Around 75 per cent of the <a href="https://www.urban.com.au/new-apartments/dairy-farmers-towers-corner-of-tudor-and-hunter-street-wickham">Dairy Farmers Towers</a> have sold since the project launched in late 2021.

“Despite tough economic conditions over the past 12-18 months, we haven’t seen a decline in activity throughout the region with demand remaining steady for the relaxed, more affordable lifestyle <a href="https://www.urban.com.au/developments/newcastle-nsw">Newcastle</a> has to offer," Berry added.&nbsp;

“From first home buyers through to downsizers, Newcastle has everything you could ever want in a city without the continuous hustle and bustle of major cities such as Sydney. Offering access to a great selection of bars, restaurants, large shopping centres and other lifestyle amenities, the region is the perfect option for those who still want a city life paired with a more peaceful lifestyle.”&nbsp;

Decode will be on site in the coming weeks upon completion of early works at <a href="https://www.urban.com.au/new-apartments/dairy-farmers-towers-corner-of-tudor-and-hunter-street-wickham">Dairy Farmers Towers</a>.

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The iCIRT rated and multi-accredited builder will lead the build of the two-tower Wickham development, which will comprise 180 one, two and three-bedroom apartments.



alisonwarters@gmail.com

Third.i appoints Decode as builder for Dairy Farmers Towers, Newcastle apartment development 

Beulah has appointed Multiplex to construction their $2 billion mixed-use Southbank project, <a href="https://www.urban.com.au/new-apartments/sth-bnk-by-beulah-60-southbank-boulevard-southbank">STH BNK By Beulah</a>.

<a href="https://www.urban.com.au/new-apartments/sth-bnk-by-beulah-60-southbank-boulevard-southbank">STH BNK By Beulah</a> will be the tallest skyscraper in the southern hemisphere when it's completed in 2029. Beulah are forecasting a five-year build, with early works to commence in late 2023 or early 2024.

The announcement follows an extensive review of globally competent and respected construction companies around the world with Multiplex chosen due to their strong history spanning over 60 years, having completed over 1,100 projects valued at over US$100 billion. Notable projects within its portfolio include the Southern Hemisphere’s highest residential tower <a href="https://www.urban.com.au/buildings/australia-108-70-southbank-boulevard-southbank">Australia 108</a>, also in <a href="https://www.urban.com.au/new-apartments/southbank-vic">Southbank</a>, <a href="https://www.urban.com.au/buildings/collins-arch-447-collins-street-melbourne">Collins Arch</a>, Jewel on the Gold Coast, 80 Collins Street, Federation Square, and Principal Tower, one of Europe’s tallest residential towers.

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The acclaimed builder is also responsible for international stadiums and landmarks including England’s renowned Wembley Stadium and Stamford Bridge, Elephant and Castle Town Centre, University of Glasgow, Dubai’s The Address Beach Resort, Abu Dhabi’s Eastern Mangroves and many more.

Soaring 365-metres high, Multiplex will be responsible for bringing the hyper-mixed-use <a href="https://www.urban.com.au/new-apartments/sth-bnk-by-beulah-60-southbank-boulevard-southbank">STH BNK by Beulah</a> to life; Australia’s first 5-minute vertical city which includes two twisting towers and a world-class retail precinct home to an impressive selection of shops, a comprehensive wellness precinct, a childcare centre, a Four Seasons Hotel, an innovative cultural centre in partnership with Centre Pompidou, commercial office space, a diverse residential offering, numerous pocket parks as well as the world’s tallest vertical garden.

Beulah Managing Director Jiaheng Chan said Multiplex was chosen due to its wealth of global experience in building tall towers that push the envelope in terms of design and construction while ensuring sustainability remains central to its core operations.

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“Multiplex is responsible for delivering some of Australia’s most significant and iconic projects, many of which push the boundaries in terms of engineering and design," Chan said.

"Following an extensive review period, we believe them to be the most experienced to be our builder partner for such an iconic project and look forward to a long-term partnership that will see <a href="https://www.urban.com.au/new-apartments/sth-bnk-by-beulah-60-southbank-boulevard-southbank">STH BNK by Beulah</a> come to life.

“Over 50 per cent of Multiplex’s Melbourne portfolio is built for repeat clients, with this signalling the second time we have worked with them, following the successful delivery of our award-winning Paragon project in 2021.

"Additionally, <a href="https://www.urban.com.au/new-apartments/sth-bnk-by-beulah-60-southbank-boulevard-southbank">STH BNK By Beulah</a> has a strong emphasis on sustainability and biophilia and Multiplex’s commitment to reducing its carbon footprint was also taken into consideration; Multiplex is committed to net zero carbon buildings and sites by 2030 and a net zero carbon value chain by 2050.”

<a href="https://www.urban.com.au/new-apartments/sth-bnk-by-beulah-60-southbank-boulevard-southbank">STH BNK By Beulah</a> has already seen a string of high-profile sales of its 691 apartments, with a number of sales ranging between $30 million and $38 million.

[smartcode_project_cta:default project_id=8804]

STH BNK By Beulah will be the tallest skyscraper in the southern hemisphere when it's completed in 2029

Multiplex to build $2 billion STH BNK By Beulah towers

The problematic shortage in the apartment development pipeline in Melbourne, paired with huge immigration forecasts over the next decade, has had property advisory giant Charter Keck Cramer predict huge growth for the <a href="https://www.urban.com.au/developments/melbourne-vic">Melbourne off the plan apartment market</a>.

Charter Keck Cramer said this week that, despite the current difficulties in the marketplace which have stemmed from the aggressive interest rate rises over the last 18 months, there are a number of reasons why apartment values will go up.

"There are a number of fundamental reasons that support the thesis that off the plan apartment value rates across the entire apartment market in <a href="https://www.urban.com.au/developments/melbourne-vic">Melbourne</a> will simply have to recalibrate upwards over the next 12 months," Charter Keck Cramer's research report authored by their Research and Strategy team Richard Temlett, Ben Carter, and Charlotte Tolfree read.

[smartcode_project:default project_id=112174 project_image_fid=199599]

Their analysis of apartment projects across 10 <a href="https://www.urban.com.au/developments/melbourne-vic">Melbourne suburbs</a> shows that&nbsp;several of those that have been released over 2023 have increased their off the plan value rates by +15 per cent to +25 per cent. That's in comparison to pre-COVID off the plan value rates of apartments of the same size in earlier stages of the same development or in comparable projects in the same locations.

They added a caveat however, suggesting that not every project in every location would be able to revise rates upwards.

"At present, the ability to increase value rates comes down to the developer, brand, location and respective target markets."

They believe the buyer market will have to accept the new pricing structure, given it is unlikely that land values will fall substantially, nor will building costs fall dramatically.

<h2>Interest rates and consumer sentiment</h2>

Charter Keck Cramer said the 400 basis point rise since April 2022, which has both dampened purchaser sentiment and cut purchasing power by around 40 per cent, has seen buyer cohorts move into a different property bracket.

"When rates were at 0.1%, all potential buyers had much higher purchasing capacities. A segment of this cohort had the capacity to purchase a detached house or a townhouse whilst another segment that had the capacity to purchase an apartment.

[smartcode_project:default project_id=5495 project_image_fid=210547]

"With rapid rate rises, there is anticipated to be a “shuffle” downwards (trade-off) where many buyers are forced to trade into medium and higher density dwellings as dictated by their revised finances.

"For those that do not wish to buy, or now cannot afford to buy, will still need a place to live. This in itself provides renter demand which will be attractive to BTS apartment investors (as well as Build to Rent operators)."

There also the renting buyer who is expected to speed up their purchase timelines given the rise in rents over the last 12 months. They expect almost all of these potential buyers will seek the most affordable product type, which will be apartments.

<h2>Supply Imbalance</h2>

While Charter Keck Cramer prepares it's&nbsp;State of the Apartment Market report for H1-2023, the key take away is that&nbsp;supply remains at incredibly low levels.

"When this is read in light of population growth being at decade highs, it is no surprise that vacancy rates are incredibly low and rents are rising so quickly.

<img alt="Melbourne supply" data-entity-type="file" data-entity-uuid="3cc52365-efac-40d9-bb07-00d9938cb47e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-07-21%20at%2010.58.55%20am.png?VersionId=r6aa0O4FUpEfD_wEqQl078dOfISsfsHN" />

"It is also an explanation for why Charter Keck Cramer feels that there will be a floor under price falls (if any) of established apartments, and also a fourth reason why we believe new apartment pricing will need to adjust upwards and will be supported by the buyer market."

<h2>Construction costs and land values</h2>

The advisory firm said that while construction costs are starting to slow, their feedback from builders in the industry is that it is unlikely they will ever revert to pre-COVID levels. They also say that there is going to&nbsp;continue to be substantial competition and demand for labour given the city-shaping infrastructure projects being completed across <a href="https://www.urban.com.au/developments/melbourne-vic">Melbourne</a> over the next few years.

"This stands to keep construction costs elevated in the short, medium and longer term."

[smartcode_project:default project_id=27554 project_image_fid=214531]

There's also the expectation that land prices are unlikely to fall substantially, if at all, given the extremely restrictive planning system across <a href="https://www.urban.com.au/developments/melbourne-vic">Melbourne</a>.

"Our investigations with many sales agents suggest that well located quality sites are highly sought after and are increasing in value given many developers are aware of the substantial supply / demand mismatch occurring across Melbourne.

<h2>2023 Apartment Value Rates</h2>

Charter Keck&nbsp;Cramer collaborated with their valuer colleagues and sampled several BTS apartment projects of varying scale across 10 suburbs in <a href="https://www.urban.com.au/developments/melbourne-vic">Melbourne</a> of similar scale that have been launched for sale to market in H1-2023. That's allowed them to&nbsp;understand the relative change in off the plan value rates in projects as at 2018 and 2019 (pre-COVID) compared to 2023.

They used the two-bedroom, two-bathroom product as it was the most popular and allowed the most meaningful comparison to be made.

They found that off the plan value rates have increased by +15% to +25% in several projects.

[smartcode_project:default project_id=342 project_image_fid=169551]

"We remind the industry that quite simply, people need a place to live. Given the shortage of supply and substantial demand for housing there is going to continue to be a large mismatch between supply and demand for housing across Melbourne over the next 2-4 years.

"At present, it is apparent to Charter Keck Cramer that the ability to increase off the plan value rates (and by how much) comes down to the developer, brand, location and target market.&nbsp;Some projects have increased value rates by only +2% to +5% whilst others have increased them by amounts greater than +25%."

Charter Keck Cramer's view is that&nbsp;in <a href="https://www.urban.com.au/developments/melbourne-vic">Melbourne</a>, the pre-COVID off the plan value rate of $10,000 per sqm is now closer to $12,000 per sqm, whilst the pre-COVID off the plan value rate of $12,000 per sqm sqm is now closer to $14,000 per sqm.

"This requires a change in mindset that needs to be led by the development and financer industry after which it is anticipated that the buyer market will follow given they have limited other alternatives in the current market."

<h2>The Outlook</h2>

Charter Keck Cramer believe the buy to sell apartment market in Melbourne is in the process of being pulled forward.

"Charter Keck Cramer has spoken about the structural changes in living preferences that are occurring across <a href="https://www.urban.com.au/developments/melbourne-vic">Melbourne</a>. These structural changes include the take up of apartment living, and also renting and renting for longer.

"It is Charter Keck Cramer’s view that the flow on effect of the pandemic described above has meant that the maturity of the BTS apartment market in Melbourne is in the process of being pulled forward (or “jumping”) by a property market cycle (i.e. 7-10 years). This will continue to play out over the next 12 months."

They say part of the&nbsp;pull forward in market maturity (evolution) will be that larger numbers of occupiers embrace living in apartments as well as the buyer market accepting higher prices for BTS apartments as this product type continues to become more mainstream. &nbsp;

"The other critical part of this expedited apartment market maturity however is that developers will need to respond by delivering owner-occupier quality apartments. Some examples of these features include apartments with extra storage, lots of communal amenity, larger living areas, larger functional balconies and more 3 Bedroom apartments." 
 
Charter Keck Cramer also believes that the RBA is close to the top of the rate tightening cycle.

"When rates stabilise, it is anticipated that market demand will start to be expressed and sales rates will accelerate. When rates start to be cut, there is anticipated to be an extremely elastic response across the entire housing market with the BTS apartment market well poised to be a primary beneficiary for many of the reasons highlighted above.&nbsp; "

Charter Keck Cramer said this week that, despite the current difficulties in the marketplace which have stemmed from the aggressive interest rate rises over the last 18 months, there are a number of reasons why apartment values will go up.



Melbourne off the plan apartment values could spike 25 per cent: Charter Keck Cramer

The current rental market crisis is already pushing enquiry numbers through the roof from both first home buyers and investors who are seeking to either get out of the rental market, or take advantage of it.

The latest statistics from property data analytics firm CoreLogic show just how strong the rental market is, particularly in Melbourne.

Their Quarterly Rental Review Q2 2023 found Melbourne is now no longer the most affordable capital city to rent a house, following 3.5 per cent quarterly growth in the rental market.

Dwelling rents in Melbourne (both houses and units), rose 3.9 per cent in the quarter, significantly outpacing growth in Perth (3.4 per cent) and Sydney (3.2 per cent).

The rise is putting pressure on renters who are now starting to look at entry-level apartments, particularly in Melbourne's inner-ring, rather than be beholden to the rent rises, while the growth has investors looking at securing stronger rental yields than they've likely ever seen before.

Where gross rental yields have started to fall across Sydney, Brisbane, Adelaide, Hobart and Canberra, they rose in Melbourne, Perth and Darwin. Another case for investors is the critically low vacancy rate, 0.8 per cent, one of the lowest capital city vacancy rates across the country.

<img alt="CoreLogic" data-entity-type="file" data-entity-uuid="3682f33e-8a57-4dc6-b979-ebca21924406" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-07-06%20at%209.26.50%20am.png?VersionId=WarMQHyNJCfIVu64kZT2ZVuXO1zoxJoe" />

Specifically looking at units, which incorporates both apartments and townhouses, Melbourne rents are up 4.5 per cent on the quarter to June, the second highest quarterly gain behind Perth.

Melbourne's median rent for units is now $532, and houses $567.

Sydney, Melbourne and Perth have also seen total rental supply between -30 per cent and -50 per cent below the previous five-year average for this time of year.

<img alt="CoreLogic" data-entity-type="file" data-entity-uuid="30201ca8-2eec-49c6-af1f-c9c6d798c7d6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-07-06%20at%209.24.32%20am.png?VersionId=xtnDqQMblFefjrXCtvhaAKH2qTfdEfpq" />

Rental listings remain well below the previous five-year average, with a national shortfall of around -32.4 per cent, or 47,500 rental listings recorded over the four weeks to June 3rd.

"Strong demand from overseas migrants, particularly international students, continues to support stronger growth in the medium to high-density sector, with national unit rents increasing by 3.6 per cent in the June quarter compared to a two per cent increase in house rents," CoreLogic&nbsp;Economist and report author Kaytlin Ezzy noted.

The report found Brighton was the most expensive suburb in Melbourne to rent a house. The median rent in the Bayside hotspot is $1,343 a week, and the median house value $3,536,000.&nbsp;

The majority of Melbourne's most expensive suburbs to rent a house are in the inner ring. Black Rock, Middle Park, Malvern and Canterbury made up the top five. The top 24 suburbs have median house rents at over $1,000 a week.

The latest statistics from property data analytics firm CoreLogic show just how strong the rental market is, particularly in Melbourne.

Melbourne no longer Australia cheapest rental market: A compelling case for buying off the plan 

Designed-focused Melbourne developer&nbsp;Neometro has submitted plans for a collection of 23 apartments in the heart of the vibrant Fitzroy neighbourhood, in collaboration with award-winning Melbourne architectural studio Edition Office.

The project, 450 Gore Street, between Brunswick Street and Smith Street, is located in a leafy residential pocket of Fitzroy. It and has a distinct geometric form elevated by subtle sculptural detailing. Neometro are targeting a gas free project, with a 7.5&nbsp;star NatHERS energy rating. A mix of one, two and three-bedrooms will be on offer.

The intention of the design of 450 Gore Street is to complement its urban residential surroundings, with it being positioned alongside Victorian terraces, worker's cottages, and an established tree canopy. It will feature&nbsp;raw concrete, coloured tactile bricks, clear fluted glass and deep forest green painted metal detailing.

<img alt="Neometro" data-entity-type="file" data-entity-uuid="f1395129-2731-48fc-8b22-5bf454e0d56f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-07-04%20at%204.22.13%20pm_0.png?VersionId=MZrxiVOv4vYsoYrBe3lsmvNeZ2NN75zl" />

The building features a carefully staggered facade, designed in line with detailed shadow analysis to maximise natural light into each building while protecting residents’ privacy. Giving way to deep private balconies, the unique design also affords each apartment direct access to outdoor space.

Floor to ceiling windows offer impressive views out across the inner-north suburbs and towards Melbourne’s central business district, which will remain protected due to the location’s zoning rules.

The building’s ground floor apartments feature generous interior volumes, which actively engage with the street and are a natural evolution of Neometro’s loft typology in size and scale.

<img alt="Neometro" data-entity-type="file" data-entity-uuid="08fd48c4-3fac-4624-b613-a940aeef6a66" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-07-04%20at%204.00.25%20pm.png?VersionId=xa1ktvKQfmfuz_xxMKaq9pCqQAiVH2r5" />

The project marks a long-lasting connection between Neometro and the City of Yarra, where it has completed 10 projects, including its first ever project 35 years ago, 51 Little Smith Street in Fitzroy.

“Since 1985, we’ve worked to deliver better architectural outcomes for the City of Yarra," Neometro Director Jeff Provan says.

"Our buildings are designed to provide for people over the course of their lives and our long-standing residents in this suburb are testament to the quality of Neometro homes."

<img alt="Neometro" data-entity-type="file" data-entity-uuid="d5a0b7d5-8d2c-4943-9401-c99ed2a22da5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-07-04%20at%204.22.01%20pm.png?VersionId=vpbWFLW8GkaQd5qNLWyzndsy2msyqkN1" />

450 Gore Street will be the first project Neometro and Edition Office have worked on together.

Neometro Director Lochlan Sinclair says the&nbsp;building represents a new partnership founded on shared values and mutual respect.

"We are very pleased to be finally coming together, to create this stunning addition to Fitzroy and continue our long-lasting connection to the suburb," Sinclair said.

Edition Office is ran by Aaron Robert and Kim Bridgland. Bridgland says the&nbsp;architectural language of the existing industrial and post industrial buildings in Fitzroy is strong horizontal banding often supported on large robust columns or piers," Bridgland says.

"This defines the pedestrian experience and retail frontages along many of the streets and we feel is a detail worth celebrating. We have reinterpreted the recurring motif into a new design aesthetic. The banding becomes the mechanism through which to unite the site’s industrial heritage and Gore Streets’ residential fabric.

Neometro will be taking registrations of interest this month, with an official launch expected in early 2024.

The project, 450 Gore Street, between Brunswick Street and Smith Street, is located in a leafy residential pocket of Fitzroy



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