APARTMENT BUILDING APPROVALS ON THE RISE AS SECTOR POWERS INTO 2023
Individual borrowers may be feeling the heat in Australia but the multi-res market is shaping up for a busy year
2 min
Approvals for apartment construction are responsible for an 18.5 percent increase in the total number of dwellings getting the green light during December, the Australian Bureau of Statistics reports.
In data released today, the figures are in contrast to the previous month where building approvals declined by 8.8 percent over November 2022.
“The increase in the total number of dwellings approved in December was led by a sharp rise in approvals for private sector dwellings excluding houses (+56.6 per cent),” said Daniel Rossi, ABS head of construction statistics. “The result was driven by a number of large apartment developments approved in New South Wales and Victoria.
“Approvals for private sector houses continued to track downwards, falling by 2.3 per cent.”
Private sector dwellings excluding houses includes semi detached, row or terrace houses, townhouses and apartments.
New South Wales saw the strongest increase, up 48.4 percent, followed by Victoria (up 20.7 percent), Queensland (up 8.3 percent) and Western Australia (up 6.4 percent). Tasmania and South Australia both recorded significant decreases, with overall approvals falling -49.7 percent and -24.6 percent respectively.
The strong performance in the apartment sector compared with private sector housing points to growing pressure on individual mortgage holders following a 3 percent rise in interest rates over 2022. The results for private sector housing were mixed, with some states recording rises, such as Western Australia (up 8.2 percent), Victoria (up 0.3 percent) and Queensland (up 0.2 percent) while others such as South Australia and New South Wales experiencing a drop, with approvals down -7.4 percent and -4.2 percent respectively.
Travellers are swapping traditional sightseeing for immersive experiences, with Africa emerging as a must-visit destination.
Wealthy Aussies are swapping large family homes for high-end apartments, with sales of prestige units tripling over the past decade.
Strong population growth, major infrastructure spending and comparatively affordable property are expected to cement Melbourne’s position as Australia’s most attractive long-term real estate market.
2 min
Melbourne is poised to become Australia’s largest city within the next decade, with strong population growth, infrastructure investment and relative affordability driving long-term property demand.
A new research report from Knight Frank argues the Victorian capital remains one of the country’s most compelling markets for investors, businesses and residents.
The report highlights the city’s rapidly expanding population, diverse economy and major infrastructure pipeline as key factors underpinning future property growth.
Knight Frank Managing Director Victoria, Dominic Long, said Melbourne’s fundamentals continue to position the city strongly for long-term investment.
“Melbourne continues to stand out as one of Australia’s most compelling real estate markets,” he said.
“It is Australia’s strongest long-term growth city with the fastest growing population, the most diversified economy, world-class liveability and the most affordable major market for office, industrial and residential property.”
Population growth driving demand
Melbourne’s population has grown at an average rate of 1.8 per cent per year since 2000, faster than any advanced global economy, according to the research.
In the year to June 2025 alone, the city added about 123,500 residents, the largest annual increase of any Australian capital.
Population growth is expected to remain one of the key drivers of demand across residential and commercial property markets, including housing, offices and logistics space.
The report forecasts Melbourne’s population will overtake Sydney’s by the 2030s, reinforcing its position as the country’s fastest-growing major city.
Office market offering value
Melbourne’s CBD office market is also attracting renewed attention from investors.
Prime office rents remain significantly lower than in competing cities, with CBD office space about 46 per cent cheaper than Sydney and around 13 per cent cheaper than Brisbane.
That relative affordability is expected to drive long-term demand from occupiers and investors seeking value in Australia’s largest office markets.
The city’s office sector is also showing signs of recovery, with effective rents rising in 2025 and demand increasing for high-quality buildings in premium locations.
Industrial market benefiting from scale
Melbourne’s industrial sector continues to expand, supported by strong population growth, e-commerce demand and the scale of the city’s logistics network.
The city already hosts the country’s largest industrial market, with about 34 million square metres of warehousing stock and significant land available for future development.
Industrial rents remain competitive compared with other capitals, while Melbourne’s port handles the largest container volumes in Australia, further supporting demand for logistics space.
Infrastructure pipeline supporting growth
More than $200 billion in transport infrastructure investment between 2014 and 2036 is also expected to reshape the city and support future property values.
Major projects include the Metro Tunnel, the West Gate Tunnel, the North-East Link and the Suburban Rail Loop, which together will improve connectivity across Melbourne and its growth corridors.
Knight Frank’s Head of Research & Consulting, Victoria, Dr Tony McGough, said these investments would play a key role in supporting the city’s economic expansion.
“Melbourne is Australia’s most economically diverse city and has delivered stable growth for more than two decades,” he said.
“With strong population growth, a highly educated workforce and unprecedented infrastructure investment, Melbourne is well placed to remain one of Australia’s most attractive long-term property markets.”
Parts for iPhones to cost more owing to surging demand from AI companies.
From mud baths to herbal massages, Fiji’s heat rituals turned one winter escape into a soul-deep reset.
