Major shift set to change apartment living,
Home builders are increasingly constructing larger apartments with additional bedrooms, anticipating that Australians who wish to downsize will prefer to live closer to the city as they age.
The latest developer to embrace this trend is Mirvac, which has commenced work on its $200 million Albertine apartment project in Melbourne.
This 15-storey boutique residential development, which is currently around 40% pre-sold, will feature 98 apartments on St Kilda Road. The project is expected to be completed by mid-2026.
Stuart Penklis, Mirvac’s Chief Executive of Development, noted that this project is part of the company’s $8 billion development pipeline.
“The demand for well-built apartments in prime locations continues to be strong in Melbourne—particularly from a reputable developer capable of delivering high-quality homes in challenging conditions,” Mr. Penklis said.
“This demand presents a significant opportunity for us, and we are dedicated to accelerating the supply of lifestyle-focused apartments designed for the future.”
Mr. Penklis also pointed out that the growing popularity of apartments among downsizers is largely due to the value disparity between houses and apartments.
House values have significantly outpaced apartment values across the country in recent years.
In July, the national median house value was $862,000, while the national median unit value was $662,000, according to PropTrack.
The developer, known for its masterplanned communities and commercial properties nationwide, has observed ongoing demand for premium and larger apartments from both upgrader and downsizer buyers.
According to Mirvac, downsizers are seeking well-located apartments near transport and amenities.
Mirvac is expecting a rise in demand from Australians aged 55 and over in the coming decade, reflecting the growth of this age group.
To address this demand, the developer has focused on larger floorplans and a wider array of amenities.
The majority of apartments in the Albertine project will be two- and three-bedroom units, as opposed to the typical one- and two-bedroom options favored by investors.
Homebuyers who are downsizing from larger houses often desire an extra bedroom and a possible study for guests and family visits.
The development will also include a limited number of one- and four-bedroom floorplans.
On the amenities front, the project will feature a wellness center equipped with an indoor pool and spa, a gym, a sauna, and a yoga and Pilates studio.
Additionally, a private dining area on the 10th floor will offer expansive views across Melbourne and beyond.
Elysa Anderson, General Manager of Residential Victoria at Mirvac, highlighted that sustainability is a key aspect of the new apartment development.
The developer aims for an average 7-Star NatHERS energy rating for the project, which will be entirely electric.
The building will include double-glazed windows, electric vehicle chargers, induction cooktops, and heat-pump technology for hot water.
“The Albertine is designed to be a forward-thinking, quality-focused building with a strong emphasis on sustainability, reflecting our commitment to making a positive environmental impact,” Ms. Anderson said.
