Fender Katsalidis-designed Kubix in Knox targets downsizers and young professionals

Melbourne property developer Deal Corporation recently embarked on its $100 million project, Kubix.

It's been touted to offer a new way of living in Knox - assisting in helping to stop migration to the inner and middle ring suburbs.

Located opposite the Westfield Knox Shopping Centre on the Stud Rd and Burwood Highway intersection in Wantirna South, the development will comprise of a three building complex with 236 apartments.

Designed by the award-winning Fender Katsalidis Architects who designed Melbourne’s Eureka Tower, Kubix is expected to be a landmark development for the region.

Already some 40% of stage one has been sold, Michael Radcliffe of DealCorp told Property Observer, with the display suite set to be open late June 2013, while completion is likely to be in early 2015.

“Kubix was designed to appeal to one of the most rapidly emerging trends in the region – the rise of couple or single person households,” Deal Corporation managing director David Kobritz said.

The development is also designed to appeal to people downsizing from traditional homes as well as people looking to remain in the local market and young professionals living and working in the area.

Kobritz said buyer demand has been strong with construction of the first stage of the complex due to start within months following a short sales campaign. With very few large developments slated for construction, demand for smaller apartments was not being met by supply.

According to data from the 2011 Census, over 26,000 Knox households had either one or two residents.

In addition, flats, units and apartments only account for 3.7 per cent of housing in Knox, with only 2053 units out of a total of over 55,000 private dwellings in the area.

Between 2006 to 2011, over 20,000 residents moved out of the City of Knox to other parts of Victoria, according to data from the Census of Population and Housing.

Kobritz suspected many people were moving because of the lack of diversity in housing options.

“The total number of apartments in Kubix will provide for just 1% of the potential population suited to apartment living so we see it as a development perfectly timed for today’s new housing options,” he said.

He said other medium density developments in Knox tended to be in-fill projects in traditional residential areas, while Kubix would offer spectacular views and provide a whole new perspective on the region.

Kobritz believes the development is also a suitable alternative for the university student housing market, therefore suiting both investors and owner-occupiers.

While Knox is widely regarded as a family suburb, Deal Corp believes there is an emerging market segment looking to downsize to a secure and convenient apartment lifestyle while remaining in the Wantirna/Knox area.

Kobritz said the trend toward apartment living was spreading out from the inner city but this was the first time it had crossed the Eastlink.

Kubix is located near five golf courses, and is also close to freeways for access to the Mornington Peninsula and the CBD.

Apartments are priced between $310,000 and $535,000.

Stage one of the development will comprise 82 one and two bedroom residences over 9 levels, complete with secure basement parking and storage.

Already some 40% of stage one has been sold, according to the website, with the display suite set to be open late June 2013, while completion is likely to be in early 2015.

According to the latest report by RP Data, the median sale price for units in Wantirna South is $415,000, up 5.1% on last year. The average discount required to sell a unit is 7.8%, while private treaty sales usually average 44 days on market.

The median asking rent for units is $370 a week, while average rental yield stands at 4.6%.