Melbourne’s high-rise apartment boom is now moving to the suburbs

An artist’s impression of the Sky One design. Source: Supplied/Lensaloft Photography

While apartment prices at its 32-storey apartment tower above the Sheraton hotel in Little Collins Street appear to be plummeting, Melbourne developer Golden Age is pressing on with its latest project in Box Hill, 14 kilometres east of the CBD.

Recent sales data shows apartments in central Melbourne are being resold at discounts of up to 30% from their original off-plan purchase price, the Golden Age Group is now focussed on getting a landmark 36-storey apartment complex, named Sky One, up in Box Hill at 545 Station Street.

Golden Age founder and managing director Jeff Xu bought the site, previously called Sovereign Square, for $40 million last year, after it received planning approval for what as then going to be suburban Melbourne’s tallest tower.

Chinese-born, Xu who came to Australia in 1998, also has extensive property interests in Sydney. His company is also building a 57-storey Elenberg Fraser-designed residential skyscraper on Collins Street called Victoria One. His company previously built the Jade Apartments in Box Hill and Xu ditched the previous Buchan Architecture design for 419 apartments on the Station Street site in favour of a new DKO design with 434.

DKO says its design was based on Feng Shui principles and the curving façade will be finished in bronze-coloured glass and metal panels.

The bottom two floors will be a “Shanghai laneways-inspired” food emporium and the third level, called Sky Lounge, imagined as a “private club” for residents with landscaped gardens, a pool, gym, spa, sauna, yoga studio, lounges, private dining and cinema/media and entertainment rooms.

Residents on on levels 32 to 35 and will have an exclusive space for meetings and functions.

Floorplans include 55 one-bedroom apartments with 44-47m2 internally, 342 two-bedroom apartment at 66-82m2 and 34 three-bedroom apartments 92-127m2.

Prices start from $358,000 for a one-bedroom apartment without parking.

Golden Age’s latest project comes as BIS Shrapnel predicts that Melbourne will have a glut of apartments within two years, which may see prices fall by 10% over the next three years.

BIS Shrapnel says Melbourne will have 15,000 more apartments than the demand suggests, leading to the price drop.