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Victorian developer Salvo Property Group has begun demolishing the site of its former headquarters at Southbank ahead of construction starting on the company’s $220 million Moray House mixed-use development early next year.
Salvo, which currently has a development pipeline of 4,000 apartments worth $3 billion to be delivered over the next decade, has sold 93 per cent of the 305 apartments in the project which was released to the market a year ago.
Salvo’s managing partner James Maitland says the move to construction will bolster confidence and add momentum to the Melbourne high-rise market after a challenging year for the local sector.
“At a time when far fewer apartments are being built, we’re delighted to move ahead with this stunning addition to the city’s skyline,” says Maitland.
“Melbourne desperately needs accelerated supply of well-designed homes with outstanding amenity in prime locations where people want to live, work and play. As a trusted developer that’s built 4,000 apartments, we’re delivering on that.
“Given worsening affordability and cost-of-living issues, it’s crucial to progress large-scale projects that deliver quality, affordable apartments which are an important mix in the housing puzzle.”
Designed by Rothelowman, Moray House is planned for a 1,200sqm island site at 42 Moray Street bordering South Melbourne and Southbank.
The development will comprise apartments of one, two and three-bedroom configurations in addition to two double-storey penthouses. It also will include 3,600sqm of office space across six levels, with 400sqm of this devoted to co-working facilities, as well as a ground-floor café and bar.
Two floors of the project will comprise amenities for residents including a day spa, yoga room, pool and gym, private dining rooms, residents’ lounges and outdoor barbecue terraces.
Salvo, which was founded in 2004 by Mario Salvo, has a number of major developments in train for Melbourne including a $1.2 billion mixed-use project at Coburg and a $1 billion development at Fishermen's Bend.
Moray House joins the company’s earlier projects Palladium and Platinum at Southbank with the development set to rise on the site of a two-storey commercial building that was previously Salvo’s head office before the company relocated to new premises in City Road.
Once demolition works are completed, Salvo plans to undertake preliminary ground works before moving to construction in January. The project is set for completion in early 2027.
Salvo says its push to start construction of Moray House follows a “growing lag” between housing approvals and construction commencements in the City of Melbourne with almost 20,000 apartments approved for development that are yet to be built.
The City of Melbourne’s draft target under the Victorian Government’s Housing Statement is the delivery of 134,000 new homes by 2051.
With 110,100 homes located in the City of Melbourne in 2023, this target equates to a 122 percent increase on the number of existing homes in the city over the next 27 years.
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