Locals shape apartment projects as boomers downsize: Savills

Locals shape apartment projects as boomers downsize: Savills
Locals shape apartment projects as boomers downsize: Savills

Developers who take the time to research their local market and deliver suburban apartment projects that reflect local culture and values in terms of architecture and landscaping are being rewarded, according to Savills director Julian Heatherich.

"We have seen a shift in the apartment product offering to owner-occupiers and particularly to potential owner-occupiers currently residing within immediate proximity of such developments," he said.

"Downsizers, perhaps baby boomers and the like, have embraced, indeed demanded this shift of focus from developers and it is paying dividends.

"As the market matures in this way we are seeing larger apartments, better design, more sympathetic local landscaping and streetscaping and ultimately a more successful product.’’

Heatherich said developments in suburbs like Camberwell may also benefit from the federal government’s $300,000 superannuation incentive.

He, with Jesse Radisich and Benson Zhou, is currently marketing a circa $8 million, prime corner landholding in Camberwell’s Anderson Hill precinct with a permit for 29 luxury apartments.

The incentive, announced in the May Budget, is designed to encourage retirees to downsize by allowing a non-concessional contribution of up to $300,000 into their superannuation from the proceeds of the sale of their home.

Radisich said the 553-555 Burke Road (corner Mowbray St) property was arguably the best permit approved site to be offered to the market this year.

"We expect extremely strong interest, as the project has been designed with large, high quality apartments targeted at owner-occupiers/downsizers, and this is really where the market is strongest at the moment," he said.

"The fact that the proposed project also includes prime retail fronting Burke Road within the Anderson Hill residential precinct will further enhance its prospects.

"Retail components – cafes, eateries and the like - are another relatively recent addition to apartment developments that have been embraced and welcomed by prospective purchasers."

Zhou said purchasers would have access to a level of amenity that is only available in the some suburbs - exclusive schools, a fashionable retail precinct, a prized village atmosphere, excellent public transport, and close proximity to the CBD.

"This sort of amenity is another important driver of suburban apartment projects and why sites such as this are so popular with developers,’’ Zhou said.

The 1427 square metre Burke Road property will be sold by expressions of interest closing Wednesday, July 12.

Melbourne Savills

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