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Melbourne apartments rise up

Melbourne high-rise apartment developments are heading into their strongest growth period in history, according to an Oliver Hume Research report.

The Metropolitan Melbourne Apartment Market report for the June quarter found high-rise building activity has grown by almost 10 per cent of the total number of multi-unit dwellings from the 1990s to early 2000s.

The current growth may be in response to land price hikes this year, with a price increase of vacant blocks at around 30 per cent, the report added.

An average of 41 projects per quarter, totaling around 3,900 dwellings, has been launched to date, with the average number of apartments per project rising 23 per cent compared with 2010.

Growth areas include Melton, Whittlesea and Wyndham, while one in three projects was launched either in the City of Melbourne or Port Philip.

Spending on new multi-unit dwellings such as units, flats and apartments rose by 8.3 per cent a year to $3.3 billion.

The most active apartment market is currently the City of Melbourne, with 64 per cent of the 17,000 apartments already under construction.

The median entry price for a one bedroom apartment is $354,000.

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