Home builders are constructing bigger apartments with more bedrooms in a bet that Australians looking to downsize want to live closer to the city in their later years.
The latest apartment builder to tap into the trend is property developer Mirvac, which has just started construction on its $200 million Albertine apartment project in Melbourne.
The 15-storey boutique residential project, which is about 40% pre-sold, will comprise 98 apartments on St Kilda Road, with completion scheduled for mid-2026.
Stuart Penklis, chief executive of development at Mirvac, said the development was part of the company’s $8 billion development pipeline.
“The demand for well-built apartments in great locations remains strong in Melbourne – especially from a trusted developer that can deliver excellent quality homes in a difficult climate,” Mr Penklis said.
“This demand is a significant opportunity for us, and we are committed to accelerating our supply of lifestyle-focused apartments that are built for tomorrow.”
Mr Penklis said one key reason that apartments were getting more popular with downsizers was due to the value gap between houses and apartments.
The $200 million Albertine apartment development will offer 98 units. Picture: Supplied
House values have made significant gains on apartment values across the country in recent years.
The latest national median house value was $862,000 in July compared to the national median unit value of $662,000, according to PropTrack.
The developer, which also builds masterplanned communities and commercial property nationally, has seen continued demand for premium and larger apartments from upgrader and downsizer buyers.
According to Mirvac, downsizer buyers have been looking for well-located apartments close to transport and amenities.
The development will have one-, two-, three- and four-bedroom apartments. Picture: Supplied
Mirvac is anticipating an increase in demand from Australians aged 55-plus over the next decade in line with the growth of that age group.
To cater to this group, the developer has prioritised larger floorplans and a greater range of amenities.
Two- and three-bedroom apartments make up the vast majority of the Albertine’s offering rather than the investor-leaning one- and two-bedroom mix.
Homebuyers downsizing from larger houses tend to want a spare bedroom and a potential study in case friends and family want to stay.
The Albertine is scheduled for completion by mid-2026. Picture: Supplied
The development will offer a smaller number of one- and four-bedroom floorplans as well.
On the amenities front, the development will feature a wellness centre with an indoor pool and spa, gym, sauna, and a yoga and pilates studio.
It will also have a private dining space on level 10 with sweeping views across Melbourne and beyond.
Elysa Anderson, general manager of residential Victoria at Mirvac, said sustainability was a key feature of the new apartment development as well.
The developer is targeting an average 7-Star NatHERS energy rating for the development, which will be an entirely electric building.
The building will feature double-glazed windows, electric vehicle chargers, induction cooktops and heat-pump technology for hot water.
“The Albertine is designed to be a future-led and quality-focused building, with careful consideration given to sustainability, in line with our commitment to making a positive environmental impact,” Ms Anderson said.
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