This article is from the Australian Property Journal archive
MORE than $2.5 billion in development applications will be put forward for the City of Melbourne in 2022 as investors and developers back the future of the CBD and city fringe following a tumultuous COVID period.
Melbourne City Council itself will assess more $1 billion worth of new development proposals in 2022, according to eForecasts, the first time it will hit the milestone since pre-pandemic 2019.
That’s in addition to the $1.5 billion-plus of state assessed development projects proposed for the municipality so far this year. Central Melbourne has been hit hard over the past few years by major lockdowns that have left offices emptied and retailers struggle.
“It’s a testament to the resilience of Melbourne that the city has attracted more than $2.5 billion in new developments in a single year. After so much COVID disruption, it’s heartening to see developers continuing to invest heavily in the future of our city,” said Deputy Lord Mayor Nicholas Reece, who added that residential occupancy levels now back to pre-COVID levels and a “record” number of new hospitality venues have opened in the city.
More than 600 planning applications worth an estimated $800 million have come before the City of Melbourne so far in 2022, with 85% of applications for brand-new developments. The remaining 15% covers amendments to existing permits.
Melbourne’s CBD has seen 200 new development applications, with the majority covering new businesses and shop fit-outs.
Carlton, on the northern city fringe, sits second with more than 70 developments, primarily for residential properties or additions to heritage homes. Development applications have also increased in Kensington within the new Arden and Macaulay precincts which have attracted multiple build-to-rent proposals, including from US giant Greystar, and major projects with a health and science focus, such as BRC Developments’ $600 million mixed-use plans.
“It’s particularly exciting to see developments popping up in the city’s newest suburbs of Arden and Macaulay. The vision to transform West Melbourne into the next Fitzroy or Collingwood is also gathering momentum with some distinctive planning applications approved,” Reece said.
New development interest has continued to grow in West Melbourne since the gazettal of the City of Melbourne’s West Melbourne Structure Plan, including the $230 million development of the West Melbourne Waterfront Precinct.
Major state-assessed developments for 2022 include a $750 million development from Abacus and Lang Walker over the Goods Shed in Docklands and a $264 million development at RMIT Village in North Melbourne.
The data also reveals the suburbs that have made the most appeals against new developments. Planning decisions in East Melbourne have attracted the most interest within the municipality, with more than double the number of appeals to VCAT compared to any other city neighbourhood.
The CBD has the second most appeals, while West Melbourne and Docklands have the fewest.
