Building boom is just warming up
If you think the CBD has too many apartments, “you ain’t seen nuthin’ yet!”
According to the latest development figures, there are 32,000 more apartments on the way for the CBD.
The City of Melbourne’s Development Activity Monitor (DAM) published in September shows that 17,051 apartments have been built in postcode 3000 since 2002.
However, it also shows that there are another 11,290 under construction, a further 13,561 approved for construction and developers have applied for 7593 more.
The last time CBD News reported on the DAM numbers was in 2014. The new figures show that 5336 apartments have been built in the CBD since then.
The report shows that 2669 residential “floors above ground” have been completed since 2002 but that a further 4728 are on the way. This figure comprises 1266 underway, 2323 with permits to build and a further 1139 applications in the pipeline.
The figures show that much more commercial space was added to the CBD between 2002 and this year, and this trend is to continue in the future.
Between 2002 and May 2016, some 726,762sqm of office space was built – four and half times as much as the 159,250sqm of retail which was added during the same period.
Looking forward, the DAM data predicts a further 360,090sqm of office space and 64,315 of retail.
In the future commercial category, 62,056sqm is under construction, 278,820 is approved and a further 29,214sqm is subject to the current applications.
The future retail figures reveal 17,639sqm under construction, 31,392sqm approved and 14,743sqm applied for.
Lord Mayor Robert Doyle commented: “Melbourne’s construction industry continues to defy residential construction activity expectations.”
“These levels of construction are the strongest since the city of Melbourne started collecting data in 2002,” Cr Doyle said.
The DAM is released just twice a year, detailing all current development activity including projects that have been granted town planning approval or are awaiting approval, as well as developments that are currently under construction or have already been completed.
Property Council acting executive director Asher Judah said: “Inner Melbourne’s apartment construction activity results reflect a healthy residential sector being driven by strong domestic and foreign investment.”
“This will lead to an increasing supply of housing stock and downward pressure on rents and unit prices.”
“Our internal data points to an slight easing in activity across greater Melbourne, but the fundamentals continue to remain positive.”
“Melbourne does not have an oversupply of apartments, just a high supply which is being absorbed.”
“Melbourne’s population is forecast to exceed 8 million people by the 2050s. Today’s apartment boom will be ensure that current and future generations have a diverse choice of affordable housing options.”