Residential property projects launched in inner Melbourne in the six months to June 30 had an average 150 apartments, more than double the average of 61 apartments in the first six months of 2008, according to recent research.
The average number of apartments in new projects in inner Melbourne, including fringe suburbs, jumped from 113 to 205 over the past two years. Prices for two-bedroom apartments rose steadily over the same period, even though the average size fell slightly to 47 square metres for one and 70 sq m for two-bedroom apartments. The most popular sites for new projects were the usual suspects, including Melbourne CBD, Southbank and Docklands.
Because of an increase in demand, this has led to an increase in apartment project supply. The general trend suggests a shift away from smaller buildings for owner-occupiers, to larger apartment buildings catering for strong buyer demand from both local and international investors. Investor demand for this sort of residential dwelling on a local level was driven by convenient location and a desire to reduce time spent commuting to work.
Internationally, countries like booming China have cashed up buyers looking to invest in strong property markets, such as Melbourne.