January 2023
This research paper seeks to identify the future supply pipeline of build-to-sell and build-to-rent in Central Melbourne in addition to gauging the performance of the Central Melbourne rental market.
Read the full Central City Rental Market & Apartment Pipeline paper here.
Background
Historically, Melbourne’s central precinct experienced strong apartment development activity. Robust population growth, employment and education opportunities were some of the primary drivers attracting this activity.
In recent years, however, the apartment market has been cooled by government policy changes. These interventions primarily targeted foreign purchasers and investors. These deliberate cooling measures impacted demand for off the plan apartments in Melbourne. A sector which was heavily reliant on those foreign purchasers and local investors.
These factors combined with the recent pandemic has ultimately softened demand, resulting in less development activity throughout Central Melbourne. Dwelling approvals and the future supply pipeline remains thin going forward with strong momentum moving towards the build to rent space.
