[APP] 108 Franklin Street | ~100m | 29 Levels | Hotel and Apartments

[Mpol02]

Chinese investment has produced some real exciting stuff in Melbourne… where’s that energy here. It doesn’t have to be about height. Great design will always and should always prevail

[SRW]

This doesn't look like it'll retain the published arthouse either but rather reference it through podium brickwork.

[Ben]

They are struggling to sell apartments in Victoria tower. There’s no way this would go ahead with over 800 apartments it’s more than double the next biggest apartment building unless it has a significant portion that are retained as student apartments.

[gnrc_louis]

They are struggling to sell apartments in Victoria tower. There’s no way this would go ahead with over 800 apartments it’s more than double the next biggest apartment building unless it has a significant portion that are retained as student apartments.

Great - look forward to an empty block on Grote street

[dbl96]

They are struggling to sell apartments in Victoria tower. There’s no way this would go ahead with over 800 apartments it’s more than double the next biggest apartment building unless it has a significant portion that are retained as student apartments.

What makes you say they are struggling to sell apartments in the Victoria Tower? It seemed to me that they marketed it pretty intensely, and have got to breaking ground much quicker than most projects.

There have been some suggestions that they might be in difficulty now, but I think we can assume this is because of broader difficulties with costs in the construction sector, rather than lack of sales per se.

[Ben]

From what I’ve heard they are having trouble getting construction funding because of low sales. It’s hearsay but from a fairly reliable source.

[dbl96]

From what I’ve heard they are having trouble getting construction funding because of low sales. It’s hearsay but from a fairly reliable source.

I find this surprising, considering the current state of the housing market (demand far outstripping supply), and the severe shortage of comparable projects at the ready to build stage.

That said, selling out a building with 800+ apartments would be another kettle of fish. To my knowledge it hasn’t happened in Adelaide before. There may well have been multi building proposals with this many units, but with multi building proposals the build can be staggered and sold in phases.

[rev]

From what I’ve heard they are having trouble getting construction funding because of low sales. It’s hearsay but from a fairly reliable source.

I find this surprising, considering the current state of the housing market (demand far outstripping supply), and the severe shortage of comparable projects at the ready to build stage.

That said, selling out a building with 800+ apartments would be another kettle of fish. To my knowledge it hasn’t happened in Adelaide before. There may well have been multi building proposals with this many units, but with multi building proposals the build can be staggered and sold in phases.

The majority do not want to live in a tiny apartment.

[Jaymz]

From what I’ve heard they are having trouble getting construction funding because of low sales. It’s hearsay but from a fairly reliable source.

I find this surprising, considering the current state of the housing market (demand far outstripping supply), and the severe shortage of comparable projects at the ready to build stage.

That said, selling out a building with 800+ apartments would be another kettle of fish. To my knowledge it hasn’t happened in Adelaide before. There may well have been multi building proposals with this many units, but with multi building proposals the build can be staggered and sold in phases.

In my opinion, the state govt. should bring back the policy of stamp duty being waived for off-the-plan or newly built apartments in the Adelaide CBD and make it a permanent fixture.

Let's be real, our CBD could handle tens of thousands of extra residents without any problems.

[Ben]

From what I’ve heard they are having trouble getting construction funding because of low sales. It’s hearsay but from a fairly reliable source.

I find this surprising, considering the current state of the housing market (demand far outstripping supply), and the severe shortage of comparable projects at the ready to build stage.

That said, selling out a building with 800+ apartments would be another kettle of fish. To my knowledge it hasn’t happened in Adelaide before. There may well have been multi building proposals with this many units, but with multi building proposals the build can be staggered and sold in phases.

The majority do not want to live in a tiny apartment.

I think it has more to do with a developer that has never built anything of this magnitude before and people are skeptical about Chinese backed developments. These people have gone from 2 and 3 storey townhouses to a 35 level tower.

[A-Town]

From what I’ve heard they are having trouble getting construction funding because of low sales. It’s hearsay but from a fairly reliable source.

I find this surprising, considering the current state of the housing market (demand far outstripping supply), and the severe shortage of comparable projects at the ready to build stage.

That said, selling out a building with 800+ apartments would be another kettle of fish. To my knowledge it hasn’t happened in Adelaide before. There may well have been multi building proposals with this many units, but with multi building proposals the build can be staggered and sold in phases.

There's a huge demand for student housing in Adelaide at the moment. I'd be surprised if a large component of those apartments weren't dedicated to student accommodation.

[NTRabbit]

From what I’ve heard they are having trouble getting construction funding because of low sales. It’s hearsay but from a fairly reliable source.

I find this surprising, considering the current state of the housing market (demand far outstripping supply), and the severe shortage of comparable projects at the ready to build stage.

That said, selling out a building with 800+ apartments would be another kettle of fish. To my knowledge it hasn’t happened in Adelaide before. There may well have been multi building proposals with this many units, but with multi building proposals the build can be staggered and sold in phases.

The majority do not want to live in a tiny apartment.

I think, more correctly, the majority can't afford to buy anything within the CBD

[WGG]

I find this surprising, considering the current state of the housing market (demand far outstripping supply), and the severe shortage of comparable projects at the ready to build stage.

That said, selling out a building with 800+ apartments would be another kettle of fish. To my knowledge it hasn’t happened in Adelaide before. There may well have been multi building proposals with this many units, but with multi building proposals the build can be staggered and sold in phases.

The majority do not want to live in a tiny apartment.

I think it has more to do with a developer that has never built anything of this magnitude before and people are skeptical about Chinese backed developments. These people have gone from 2 and 3 storey townhouses to a 35 level tower.

Developers don't build - builders build.

Next?

[rev]

I find this surprising, considering the current state of the housing market (demand far outstripping supply), and the severe shortage of comparable projects at the ready to build stage.

That said, selling out a building with 800+ apartments would be another kettle of fish. To my knowledge it hasn’t happened in Adelaide before. There may well have been multi building proposals with this many units, but with multi building proposals the build can be staggered and sold in phases.

The majority do not want to live in a tiny apartment.

I think, more correctly, the majority can't afford to buy anything within the CBD

Doubt it.
It's cheaper to buy an apartment. But the majority still choose to buy a detached dwelling.
The majority of active members of this forum might prefer to live in a shoebox apartment because it suits their life style choices, but the majority of society has different wants it appears.

[dbl96]

The majority do not want to live in a tiny apartment.

I think, more correctly, the majority can't afford to buy anything within the CBD

Doubt it.
It's cheaper to buy an apartment. But the majority still choose to buy a detached dwelling.
The majority of active members of this forum might prefer to live in a shoebox apartment because it suits their life style choices, but the majority of society has different wants it appears.

Last year's massive increase in Adelaide property prices will push people towards apartments, even though it is not their first preference, because detached houses, especially those in the core Adelaide region (south of Grand Junction Rd, north of O'Halloran's Hill) have risen well above the average worker's purchasing power. Higher interest rates will also push people towards cheaper purchases (including apartments), because their capacity to borrow will be reduced. Thirdly, migration is back after COVID, and this is driving strong demand for well-located rentals, with most new migrants used to apartment living anyway.

I expect all three of these trends to increase demand for apartments in the short term, although construction of new apartments is currently facing strong headwinds because of issues in the construction industry.

CBD apartments are actually quite expensive though, which might partly explain why apartments in the inner suburbs seem to have more success getting off the ground. Further, even with the price increase we have seen, there is still not a big enough price differential between the cost of a detached house and the cost of an apartment for most people to be prepared to forgo the benefits of living in a detached house. This is perpetuated by most new apartment projects targeting the top end of the market - I think they would sell a lot more apartments if they targeted the bottom end of the market, because those are the people who would be happy just to get a roof over their heads. Whereas if you have plenty of money to throw around, I'm not sure what the attraction is of buying a luxury apartment (some costing multiple millions) rather than a detached house in a nice suburb, which in many cases is cheaper than the luxury apartments.