Luxury boomer tower now planned for city transport hub
MELBOURNE: The trend to build high rise residential apartments around and above transport hubs is gathering pace.
A large site with approval for a $250 million residential tower has hit the market in Melbourne’s St Kilda Road precinct, a short walk from the new Anzac Metro station, amid a wave of development that is transforming the area with luxury apartments.
About $1.5 billion worth of upmarket apartments are under construction along St Kilda Road alone, and more projects are under consideration now that the city’s new metro line running through the area is operational.
Taking advantage of that, the South Melbourne site also has approval for a pedestrian walkway connecting Albert Road to the new Anzac Station on St Kilda Road, which is part of Melbourne’s $12 billion Metro Tunnel Project.
Office towers and other commercial buildings in the area have been steadily giving way to a new generation of luxury towers in the precinct, home to the popular Royal Botanic Gardens and Albert Park Lake.
The 1728-square-metre site at 13-21 Palmerston Crescent, currently home to a car park, is listed for sale with expectations of about $30 million. Approved designs by architect firm Fraser & Partners for a 19-storey tower feature 196 apartments, a mixed-use ground floor and 151 car spaces.
The site is controlled by businessman and former property developer John Shalit, who was behind Melbourne Aquarium and an older redevelopment of South Yarra’s Jam Factory. He is also a director of the corporate entity holding the site, property records show.
Residential development in all forms is picking up in the neighbourhood. One of the country’s largest build-to-rent developers, Local: Residential, acquired a site on nearby Bank Street this month with plans for a $370 million apartment project.
About a 15-minute walk from the Palmerston Crescent property, Kokoda Property Group acquired a 6085-square-metre site at 441 St Kilda Road in January from Dymocks Properties for more than $100 million and has plans to build an 18-storey luxury residential project.
Some sites within the area are changing hands at discount prices, too. Less than a kilometre away, billionaire businessman Solomon Lew acquired 417 St Kilda Road in September for $86 million – a significant markdown on the $144.4 million paid by Singaporean government investor Mapletree in June 2017.
A decade ago, 13-21 Palmerston Crescent was listed for sale with $40 million price expectations in 2016 alongside a property at 28-32 Albert Road. The Albert Road site was subsequently sold for $20.68 million in 2018 and was turned into an 88-room hotel by DCF Property Group.
LAWD’s Lukas Byrns, who is managing the South Melbourne site sales campaign with Henry Burbury, said the property listing was expected to draw considerable attention from a range of buyers.
“We expect to see interest from both build-to-sell and build-to-rent [development] groups seeking high-quality, city fringe development opportunities,” he said. “In addition, the property will appeal to retirement living developers due to its exceptional location, excellent transport connectivity, sweeping views, and derisked planning approval.
“[This is] a rare chance to deliver a landmark project surrounded by some of Melbourne’s most iconic destinations.”
While the site has been approved for a 196-apartment residential and commercial building, Byrns said there was additional development potential with a revised scheme prepared by Fraser & Partners for 242 apartments, which would be made available to prospective purchasers.
The property is just 450 metres from Melbourne’s “Tower of Power” on Albert Road.