An overview of Melbourne's serviced apartment pipeline
In light of Urban.com.au's recent article highlighting the 9,500 hotel suites in development across the city, it's an opportune time to look at the serviced apartment sector in comparison.
45 separate projects are in motion which include hotel suites or are solely dedicated toward hotel accommodation. Conversely the Urban.com.au Project Database is tracking 31 current developments capable of adding a further 3,181 serviced apartments to the Melbourne market.
Traditionally not as robust as the hotel sector, Melbourne's serviced apartment market is nonetheless gaining altitude, considering Urban.com.au is only tracking three major serviced apartment projects currently under construction. This hints to the strong line of projects yet to reach construction; 1,903 serviced apartments are approved with a further 891 at planning.
387 serviced apartments or only 12% of the development pipeline is currently under construction.
The headline project is Quest NewQuay Docklands. Valued at $71 million, the development is the second Quest Docklands outlet and features 221 serviced apartments under construction at the hands of developer MAB Corporation and head contractor Built. The project has been acquired by Ascott Limited and the Qatar Investment Authority.
Other projects of note under construction are the 70 Tyrian Serviced Apartments-branded suites within The Arthur at 14 Queens Road and the 96 suites within Quest Pacific Epping, located at 125 Cooper Street.
Approved serviced apartment projects yet to be acted upon accounts for a healthy 60% of the development pipeline across 16 separate projects.
Brady Hotels Central Melbourne has a combined 330 suites approved, with construction beginning on one of their sites at 109-111 Little Lonsdale Street last week. A host of other projects also approved to carry a substantial number of serviced apartments; 424-426 St Kilda Road, 360 William Street and 320 Plummer Street are all prime examples.
Some noteworthy projects are also at planning. 158 City Road, 58-66 La Trobe Street and 56-62 Clarendon Street all carry a serviced apartment component as part of larger mixed-use schemes.
The spread of serviced apartments across Melbourne's suburbs is also noteworthy. Airport West, Epping, Moorabbin, Oakleigh, Abbotsford and Coburg North may be beneficiaries of new serviced apartment projects subject to planning approval.
Harder to quantify are various residential developments which ultimately become in part or entirely serviced apartment outcomes.
A prime example is The Mason Brunswick East at 310 Lygon Street. Having been marketed as traditional apartments to the wider public, the project upon completion includes a complement of serviced apartments available online for booking.
Whilst a highly accurate overall figure for Melbourne's serviced apartment pipeline can be difficult to pinpoint, it's clear that the sector is enjoying a surge in development attention.
