Super fund Cbus Property is aiming straight for the heart of the well-heeled owner-occupier market with apartments in its Spring Street project in the Melbourne CBD expected to fetch at least $2 million apiece.
The 33-storey development approved for 17 Spring Street at the ritzy east end of the CBD was originally permitted for 84 apartments.
Already that number has been trimmed to 76 apartments as the project hits the market and may be reduced even further as deep-pocketed buyers look to amalgamate units into larger dwellings.
Cbus Property, the development arm of the construction industry super fund, swooped on the property now occupied by a Mercure-branded hotel in $70 million-plus deal two years ago.
The site overlooks the Treasury Gardens and is just metres from a landmark apartment tower that Cbus Property recently completed at 35 Spring Street.
For chief executive Adrian Pozzo the upmarket strategy directly follows the success at 35 Spring Street as well as other top-shelf residential offerings, including in nearby East Melbourne.
“We looked at it and looked at the market and said, “what is the market asking for?” he said.
“You realise that the market is looking for residences. The concept that we are building apartments, no. We are building residences, we are building homes for people.”
Underscoring that point, Mr Pozzo points to the number of families with children who moved into 35 Spring Street, buyers who are described better as home-makers rather downsizers.
Designed by Bates Smart, the latest development will rise from a 1270 square metre site. The $300 million project will join Cbus Property’s $2 billion residential pipeline comprising six projects across Melbourne, Sydney and Brisbane.
It is a short half-block from the 35 Spring Street project which was completed in 2017 after it sold out off the plan.
Mr Pozzo is quick to point out that resales for apartments in 35 Spring Street following settlement in April 2017 have averaged a 20 per cent price gain. Some three-bedroom residences have achieved increases of more than 40 per cent from the original off the plan purchase price.
“We are confident in the performance of the top end of Melbourne’s residential market,” he said.