let alone paying $80 per kilo for flathead tails, notably the GC270 Activity Centres announcement ….
In light of recent occurrences in the middle east, Wingate has been liaising with quantity surveyors and builders to understand current pricing and market movements on both midrise and high-rise Melbourne based projects.
On a 62 square metre average apartment, current cost benchmarks imply required net sales of roughly $16,000-$17,000 per square metre of net saleable area to meet realistic mid‐teen return expectations.
When these pricing thresholds are overlaid onto the Activity Centres Program, three clear feasibility tiers emerge.
Only a small group of inner‐ring locations, including #SouthYarra, #Prahran, #Windsor, #Hawthorn/Glenferrie, #Kew Junction, #Armadale and #Malvern demonstrate established buyer acceptance of apartments priced around $900,000 or more.
A second tier of centres such as #Brighton, #Camberwell Junction and #Bentleigh remains execution‐dependent, requiring rebased land values and efficient delivery.
The majority of nominated centres sit well below viable pricing for 'build to sell' under current conditions.
GC270 facilitates the development of new homes within 25 train and tram zone activity centres, grouped as ‘Stage 1’ of the Train and Tram Zone Activity Centres Program.
The amendments do this by introducing new built form and height controls and applying those controls to the core of each activity centre, generally through new schedules to the Built Form Overlay.
The amendments also apply the Housing Choice and Transport Zone to the catchments of each activity centre.
Per Charter Keck Cramer / Richard Temlett, sales velocity for most apartment projects in Melbourne now sits at 1-2 per month!
All things being equal, #Melbourne’s mid and high‐rise residential market remains structurally challenging for the foreseeable future.
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