Apartment love affair continues

MELBOURNE'S love affair with apartment living continues unabated. Melbourne is rapidly developing an inner-city residential culture with an increasing acceptance of the apartment option.

Relief from outer-suburban isolation, direct access to central-city amenities and facilities and respite from commuting are key drivers of this change.

Developers are tuning in to this growing convenience and lifestyle trend. Bureau of Statistics data for March reveals another monthly leap in building approvals for apartments. The number of units approved for construction in Victoria surged by nearly 200 per cent over the previous month.

Although the monthly series is notoriously volatile, longer-term comparisons reveal the underlying trend. In the 15 months since December 2009, 20,795 units have been approved for building in Victoria compared with 8696 approved over the previous 15 months. The vast majority of the increase comes in inner-city apartments.

The increased value in construction of $2.7 billion equates to an extra 15,000 full-time jobs: good news for the building industry and the wider Victorian economy.

Increased apartment construction has positive implications for a balanced housing market by providing wider choice for renters and buyers.

Dr Andrew Wilson is senior economist for the Fairfax Media-owned Australian Property Monitors.