Melbourne Residential Outlook Report 2024

22 Observations reveal a significant increase in the number of developers delivering townhouses compared to historical trends. This trend reflects a natural evolution in the development of inner Melbourne. Older, established areas are increasingly being considered for knock-down and rebuild projects, driven by the need to create more modern and efficient residences with well-established amenities, transport links, and schooling. Additionally, the State Government’s focus on inner urban development over greenfield housing estates, due to the high cost of infrastructure in greenfield areas, further supports this shift towards Inner Urban. However, interestingly, due to the higher median price point for houses and townhouses in Inner Melbourne, coupled with high interest rates and decreased borrowing capacity, affordability will be a key consideration moving forward, supporting apartments as a more obvious choice for buyers moving forward. Considering the severe housing shortage, apartments are anticipated to become increasingly attractive for living, investing, and appreciating in value, mirroring the trend seen in Sydney over the last 20 years. Conclusion / Summary