Melbourne’s residential property market is tipped to outperform the rest of the country once interest rates stabilise and start to fall. This is positive news for CDL Australia, as its Southbank Build to Rent scheme and Fitzroy Fitzroy mixed-use development are poised for success amid rising confidence in Melbourne’s property market
With rate cuts on the horizon in the next 12 months, experts are predicting improving affordability, and rising rental yields will attract investors and home buyers back to the city’s market.
While Melbourne’s property prices underperformed Sydney and Brisbane over the past few years, values are expected to gain ground throughout 2024 and 2025, CDL state.
Both local and global investors are increasingly turning their focus to Australia’s rental market. As interest rates begin to stabilise for investors, Fitzroy Fitzroy and Southbank offer attractive returns and unique opportunities.
“It may take several rate cuts to fire up Melbourne’s house prices, but when it occurs, it could come back with greater strength than what we’re likely to see in Brisbane and Adelaide, and quite possibly Perth, depending on what happens with commodity prices.
“History tells us that as the affordability deteriorates in other capitals and improves in Melbourne’s favour, that will eventually set up a sharper recovery in the Melbourne market relative to the other cities.”
Shane Oliver, Chief Economist, AMP
Construction is underway at Southbank – CDL’s first Melbourne’s Build to Rent development. Works started in January this year.
Situated within the Fishermans Bend precinct, Southbank will deliver 237 apartments with amenities including a gym, wellness areas, podcast rooms and co-working spaces.
The Fitzroy Fitzroy scheme is brought forward by a joint venture between CDL Australia, Chapter Group and Crema Group.
Located at 411 Smith Street, the mixed-use development comprises 53 contemporary apartments and five luxury terraces, complemented by commercial spaces on the ground floor.
