Fitzroy Fitzroy project poised for success amid rising confidence in Melbourne market

It’s good news for CDL Australia’s joint venture Fitzroy Fitzroy project, with the Melbourne residential property market tipped to outperform the rest of the country once interest rates stabilise and start to fall.

With rate cuts on the horizon in the next 12 months, experts are predicting improving affordability and rising rental yields will attract investors and home buyers back to the Melbourne market.

AMP chief economist Shane Oliver was recently reported saying all markets would benefit from lower interest rates, but Melbourne would come out on top.

“It may take several rate cuts to fire up Melbourne’s house prices, but when it occurs, it could come back with greater strength than what we’re likely to see in Brisbane and Adelaide, and quite possibly Perth, depending on what happens with commodity prices,” he said.

“History tells us that as the affordability deteriorates in other capitals and improves in Melbourne’s favour, that will eventually set up a sharper recovery in the Melbourne market relative to the other cities.”

CDL’s Fitzroy Fitzroy project is now under construction in the heart of Fitzroy. The mixed-use development, at 411 Smith Street, is a joint venture with Chapter Group and Crema Group, and will feature 53 apartments and five luxury terrace homes as well as ground-floor commercial and retail.

Retaining its current heritage façade, which once formed part of the MacRobertson Steam Confectionery Works, a confectionery company founded in 1880, the project pays homage to the rich history of Fitzroy.

In addition, construction is also under way on CDL Australia’s second current Melbourne project – a Southbank build-to-rent project. The development, in the city’s thriving Fishermans Bend precinct, will feature 237 apartments and a range of luxury amenities, including a gym, wellness area, podcast rooms, and co-working spaces.

While Melbourne’s property prices underperformed Sydney and Brisbane over the past few years, values are expected to gain ground as we move through 2024 and 2025.

Indeed, CoreLogic data reveals some middle priced inner-city and north-east suburbs have already started to bounce back.

Values in Middle Park, St Kilda, Brunswick West, Watsonia and Keilor East rose between 1.8 per cent and 3.3 per cent in the past three months, reversing their declines in the previous quarter, CoreLogic data shows.

Fitzroy itself has enjoyed an annual compound growth rate of 1.5% for houses and 4.1% for units, and experts have tipped it for future growth.

For more information on Fitzroy Fitzroy, visit the project page here.

At a glance

The Melbourne housing market has not performed as strongly as some other capitals over the past year, but property values are expected to gain ground over the next 12 months
There are early signs of a boost in confidence among buyers and sellers, and auction clearance rates have remained strong, showing a significant depth of buyers in the market
Melbourne home prices were flat in April, growing 3% over the past year, while unit values grew 2.5% over the year
Melbourne’s property values have risen 11% since the onset of Covid, but they currently sit 4.0% below their previous peak in March 2022
Fitzroy has been tipped for future growth, as several other inner-city suburbs start to bounce back