Concerns about a potential oversupply of Melbourne apartments has failed to deter developers with 49 new projects launched over the June quarter, according to real estate group Oliver Hume.
Combined, the 49 projects could deliver more than 5800 new apartments – a record number for Oliver Hume data going to back to 2011.
The quarterly figures were 24 per cent higher than the 4678 apartments launched across 37 projects over the March quarter and more than double the number launched over the same period last year.
Meriton boss Harry Triguboff, one of the biggest developer of new apartments in Australia, has ruled out undertaking developments in Melbourne, claiming the central business district market is oversupplied with apartments.
New launches over the June quarter include the 69-level Light House by Chinese-backed developer Hengyi in the CBD featuring 608 apartments, the latest tower in Hong Kong-based Far East Consortium’s Upper West Side development on Spencer Street featuring 402 apartments, Lend Lease’s 888 Collins Street tower at Victoria Harbour, Docklands featuring 363 apartments and Malaysian developer Mammoth’s 61-storey Mammoth Empire tower on Elizabeth Street with 474 apartments.
Andrew Perkins, head of research at Oliver Hume, said the record number of apartment releases over June showed there was continued confidence among multi-unit developers in Melbourne’s off-the-plan market.
“Notably, 20 per cent of projects released during the quarter are also under construction,” said Mr Perkins.
The City of Melbourne, which includes the CBD and Docklands and the City of Yarra, dominated new releases over the June quarter, but the figures also showed new apartment markets emerging in Glen Eira in the south-east and re-emergence of Darebin in the north, Mr Perkins said.
Last week, Victorian planning minister Matthew Guy approved the $900 million Australia 108 tower on Southbank by Singaporean developer Aspial, which will be the tallest residential tower in the southern hemisphere at 319 metres once completed.
Mr Guy also approved two further high-rises – a 241-metre apartment tower at 452 Elizabeth Street, with 75 storeys, and 622 apartments and a 54-storey tower at 84-90 Queensbridge Street in Southbank.
In all, the three projects are expected to generate more than $830 million in investments, deliver 2022 apartments and create 5800 construction jobs.
“Central Melbourne is the right place for high-density, high-rise living,” Mr Guy said.