Luxury in the sky – wealthier buyers expect all the trimmings

So you think you know the great Australian property dream? The quarter acre block is being sidelined by our desire to live close to the action. Cultural anathema only a few decades ago, the shift to the apartment lifestyle is occurring in unprecedented numbers, with apartment building approvals hitting an all-time high.

But amid concerns of an oversupply, a two-speed apartment market is emerging. It’s divided between a market that has been geared primarily at investors, and a new luxury end tailored to owner-occupiers to whom to sky really isn’t the limit.

“Local investors are starting to be a lot shyer,” says BIS Shrapnel senior manager of residential property, Angie Zigomanis. Paradoxically, he notes, this is a factor driving the relative strength of the owner-occupier market where wealthier buyers, many  downsizing from the traditional family home, expect all  the luxury trimmings. “Most of the apartment stock is not long-term living friendly, and not family friendly – the only way to make it stack up is to tailor it to the luxury end. That sector of the market, while narrow, is still buoyant.”

The wish-list goes something like this: people want a place to lock, leave and go on holiday, with plenty of space, a concierge for security, and tailored communal facilities to make it feel like living in an exclusive resort. A luxurious house in the sky, in other words. And location matters. “It’s important it’s not just the right product but the right location,” says Zigomanis. “Some in East Melbourne have done very well, and on Spring Street. Right on the river would be a desirable location as well.”

Matt George, of property managers Urban Activation, says discerning owner-occupiers have been relatively starved of quality options, but developers are stepping into the breach and courting the luxury end of the market. Body corporate costs were once blamed for the death of communal facilities, but they’re back with a vengeance in order to lure the discerning buyer – the more the better, including wine rooms and private dining rooms.

The sales manager for luxury residential tower 88 Melbourne from developer New Sky Group, George says the Queensbridge project, where one-bedroom apartments start from just shy of $500,000, is unique in targeting the owner-occupier market.

“There’s an average of just four apartments per floor,” says George, “all with the highest finishes and amenities. While we’re sure there will be some investor interest, it’s not the location for cheap investment apartments.”

George says a development such as 88 Melbourne can be read as an architectural response to the oversupply of cheap investment apartments.

People downsizing from wealthy, leafy suburbs really won’t settle for anything less than a luxury house in the sky (perhaps you can tell by the 88 Melbourne marketing campaign: “This is your address, elevated. A home and haven in the sky.”)

And if the communal facilities, 24-hour concierge and sculptural art space sound like so much window-dressing, consider this: good design holds value.

Recent BIS Shrapnel analysis has shown older-style (and therefore larger) apartments in Richmond are changing demographic, from investors to owner-occupiers.

“There’s a real switch in the apartment ownership profile towards owner occupiers,” says Zigomanis. “It’s a changing mindset.”

The must haves

• Location, location, location. If you’re going to sell high end apartments you need a high end location to match such as green and leafy East Melbourne or down by the river in the thick of the entertainment district.
• A 24-hour concierge who will not only  screen visitors but will act much as a hotel butler, organising everything from dry-cleaning to concert tickets and dinner reservations.
• All the trappings of luxury entertainment, from executive style private dining rooms to humidor-style wine storage facilities.
• Gymnasiums are no longer sad little light-challenged rooms with a single exercise bike and a set of dumbbells. The new gyms are state-of-the-art facilities with high-tech gear – and they’re enjoyable to be in.
• Cinemas –residents love them for events like the Grand Final and State of Origin rugby.

Flying high

Chris Hayton wants to change the way people think about apartment living. The principal architect at Rothelowman, designers of 88 Melbourne, says with more wealthy owner-occupiers looking at buying “houses in the sky”, it’s increasingly important to exceed their expectations with good quality communal facilities. One proviso: they must be useful. “Communities not commodities,” says Hayton. “One of the things a high rise development needs is to provide good quality communal facilities that will actually be used. It’s important people have somewhere to meet and socialise with their neighbours.”

Attracting this rarified demographic to 88 Melbourne has been a multi-pronged task. Apartments begin on the eighth floor, lifting them far above Kingsway and, importantly, making sure view corridors are protected. “Residents need not worry about being built out.”

Central to the brief was that 88 Melbourne should not be a sheer glass-walled tower that could be confused with a commercial building. Cue a unique diamond-patterned facade – “It plays on crumpled metal, or origami” – that seems to shift and change as the sun moves across it (there are plans for a distinctive coloured LED lighting system for a similar effect at night).

“We were preoccupied with designing a building that can be seen in the round, a sculptural piece in the skyline rather than four facades jammed together,” says Hayton. “There’s a singularity about it that presents as much as a piece of city-making as it is an individual building.”

Cover property

88 Queensbridge Street, Southbank
$499,800-$15 million

Developer New Sky Group is making no bones about aiming squarely at the higher end of the apartment market with its 55-storey tower in the heart of Southbank. 88 Melbourne has only 27 single bedroom apartments, starting at $499,800. The project from architects Rothelowman and designer KPDO is aiming to be a skyline icon, with an arresting sculptured diamond facade based on the principles of origami. Resident amenities include a full-size lap pool, sauna, spa and steam room; a wine room that holds 2500 bottles, with private allocations available for two and three-bedroom purchasers; landscaped outdoor areas, including barbecue facilities; private dining room; a dual-height lobby with fireplace and sculptural art space, and a 24-hour concierge. The 12 upper floors will be devoted to full-size residences of three bedrooms or more, including sub-penthouses and two penthouses. Two-bedroom apartments (there are 176) start at $639,800, while three bedrooms start from $1,649,800.

Urban Activation, Matt George 0410 325 870

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