Thousands of new apartments approved for Melbourne CBD

Thousands of new apartments approved for Melbourne CBD

by Stefanie Garber 0 comments

Melbourne’s CBD market will be flooded with just under 2,000 new apartments in the coming years, after the Victorian government approved construction of three new skyscrapers.

One project, Australia 108, will have 100 floors and stand 319 metres high.

The tower will be just shy of a record, with Australia's tallest building, Q1, standing at 323 metres.

Around 1,105 new apartments will be included in the tower.

Another 75-storey residential building has been approved at Elizabeth Street, creating 622 apartments, while a third building in Southbank will create 295 apartments.

Planning minister Matthew Guy said residential construction would help Melbourne avoid a housing crunch.

“By building more homes, we are ensuring we won’t have the drastic and harmful housing shortage Sydney is experiencing,” he said.

However, some experts have suggested Melbourne may be facing an oversupply.

Earlier this year, SQM Research managing director Louis Christopher warned the Melbourne market had elevated vacancy rates due to over-activity in the construction sector.


Data from SQM shows the vacancy rate in Melbourne is currently at 5.1 per cent, down from a high of nine per cent in January.


Over the past three years, asking rents in the CBD for apartments have dropped by 7.5 per cent.


In Southbank, the rental market is even weaker.


Apartment rents have risen by 7.1 per cent in the past year but are down by 20.4 per cent over the past three years.


Vacancy rates are at 6.1 per cent and have been trending upwards since the beginning of the year.

Thousands of new apartments approved for Melbourne CBD
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

With a combined sales volume of over $14 billion in 2017, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
Why David is holding himself accountable for taking his career to the next level

David Walker says he’s holding himself accountable – win or lose, the overall success of his real estate career rests entirely on the e...

View all podcasts

Does blogging help in growing your personal brand?

Depends on who is writing it
Depends on who is reading it
Do you have an industry update?