By
Michael Bird
November 19, 2024
•
4
min read
In Market Insights EP72, Mike Bird from Urban sits down with Michael McCormack, Managing Director of Milieu Property and Matt Malseed, Managing Director of Hamton Property Group, to discuss the current challenges and opportunities facing property developers in Melbourne's tough market. In this engaging conversation, the two seasoned developers share insights into their unique approaches to large-scale projects, market conditions, and the strategies they employ to deliver quality developments despite economic pressures.
Both McCormack and Malseed discuss their experiences with major projects such as Milieu’s Money Valley Park and Hamton’s Gordon Street, highlighting how they have adapted their strategies to fit the current economic landscape. With rising construction costs, tightening margins, and shifting demand, they emphasize the importance of quality design, careful market positioning, and the value of long-term thinking. The discussion also touches on the critical role of government collaboration, buyer expectations, and overcoming challenges such as escalating owner corporation (OC) fees and affordable housing integration.
A significant portion of the conversation focuses on the evolving preferences of buyers, particularly the shift toward larger, high-quality apartments and the increased demand for owner-occupier housing. McCormack and Malseed share their strategies for ensuring their developments stand out in a crowded market, such as integrating historical elements in their designs or adopting innovative, boutique-style layouts to make apartments feel more personal and exclusive.
The developers also discuss the ongoing relationship with local councils and government bodies, noting that while regulatory challenges persist, there has been a shift toward more constructive dialogue. Both McCormack and Malseed agree that site acquisition remains difficult, especially as feasibility studies and pricing expectations continue to evolve in response to rising build costs and market uncertainty.
As Melbourne’s property market remains in flux, McCormack and Malseed offer a cautiously optimistic outlook for the future of urban development, pointing to ongoing demand for high-quality housing in key areas. They also touch on how technology can help developers manage costs, particularly in the area of amenities, as well as the role of affordable housing in future projects.
A private lunch for 80 of VIC apartment industry leaders featuring panel discussions with Ilan Samuel of Samuel Property, Brad Walters of Equifax, Corey Nugent of Resilience Insurance, John Meagher of Three Sixty° Property Group, George Glover of Social Garden, Jeroen Weimar from the Department of Premier and Cabinet (Vic), and Michael McCormack of Milieu Property. Topics include iCIRT ratings, consumer confidence, data analytics in sales, and government roles in supply. Explore insights from top experts driving innovation and policy in the real estate sector.
More panel highlights and photography:
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