Big Bets on Development: Melbourne’s New Projects Could Redraw Local Property Map

Massive cranes and demolition crews have returned in force across Melbourne, with a new raft of development projects breaking ground from Southbank to the city fringe this winter. Among the largest is the much-anticipated transformation of the St Kilda Road IBM site into The Grand, a $650 million dual-tower residential and retail precinct scheduled to open its doors in late 2028.

Why the Building Boom Matters Now

With median house prices in Greater Melbourne hovering just below $920,000, and local buyer confidence on the wane after another wave of auction withdrawals, the flow of new multi-stage projects is being watched closely by owners and investors alike. Planners and local businesses say the developments could inject much-needed housing supply, especially for inner-city renters squeezed by post-pandemic migration and rising demand from international students.

The city is already seeing momentum. Construction has accelerated at the $350 million Parkside Residences on Fitzroy Street, St Kilda, where the 28-level tower will deliver 140 high-end apartments, a childcare centre, and a ground-level food hall by mid-2027. Meanwhile, the Yarra Bend precinct—taking shape along Heidelberg Road in Alphington—has confirmed it will increase its proposed build-to-rent stock after new zoning amendments cleared the way in May.

Hot Spots and Hard Numbers

According to CoreLogic data, apartment values in the City of Melbourne LGA have climbed 2.4% in the last quarter, outpacing the overall market as recent completions at Queens Place and Australia 108 draw new residents into the CBD and Southbank. The Frankston corridor—especially along Beach Street and Nepean Highway—continues to record double-digit year-on-year price growth, now averaging $690,000 for a unit, fuelled in part by two new mixed-use towers proposed for the Kananook Creek precinct under a City of Frankston fast-track program.

Developers and planners say the Fishermans Bend urban renewal area remains one to watch, with Planning Minister Sonya Kilkenny’s office confirming approval last month for a $520 million, five-tower complex by the Mirvac-Lendlease joint venture on Lorimer Street. The site, comprising more than 1200 apartments and a future co-working hub, is expected to anchor further investment in a part of Melbourne tipped to house up to 80,000 residents by 2050.

What Comes Next for Locals and Buyers

Whether these projects foster vibrancy or spark local resistance hinges on upcoming council consultations—particularly in heritage-rich stretches like South Yarra, where the City of Stonnington is weighing stricter height limits. Locals in precincts like Cremorne and Brunswick should also keep an eye out for further announcements: both have been earmarked for infill and mixed-use development under the Victorian Government’s newest planning strategy launched in April.

For buyers, it means more choice is likely on the way—though with delivery timelines stretching out and construction costs still stubbornly high, waiting for new stock could require patience. Agents say savvy house-hunters should monitor not just price guides, but also likely completion dates before making any moves. With more than 7,000 new dwellings approved across Melbourne's metro area in the first half of 2026, the city’s skyline—and its property market—may soon look very different indeed.