The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FULL PROGRAM RELEASED FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FULL PROGRAM RELEASED FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
VIEW FULL AGENDADETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
10
print
Print
OtherTed TabetThu 22 Jul 21

High-Net Worth Family Lists Melbourne Apartment Tower

75369d23-e554-4a01-a537-c0581467fff6

A Malaysia-based family has listed a 280-room serviced apartment building close to Melbourne’s legal precinct as the city’s apartment market begins to pick up.

The 25-storey Pegasus Apart-Hotel, at 206 A’Beckett Street, comprises studios and two-bedroom apartments as well as two penthouses, on level 23 and 24.

The building is zoned capital city one, allowing for an array of uses including residential, hotel, office, build-to-rent and co-living.

It is currently operating as a serviced facility with some long-term residential tenancies, and includes a restaurant and bar, three conference rooms, indoor pool, fitness centre and secure basement with parking for 80 vehicles.

JLL’s capital markets, and hotels and hospitality teams have been appointed by the family to undertake an international expressions-of-interest campaign.

JLL senior director of capital markets Josh Rutman said the property could benefit from the City of Melbourne’s five-year market renewal program, which encompasses a $450-million development on the corner of Therry and Queen streets.

▲ The property sits within a 5-minute walk from Queen Victoria Market.


“While the Melbourne hotel market continues to face some challenges, we expect a number of investors will look to capitalise on the legacy of the property through a rebranding exercise,” Rutman said.

“Alternatively, we are also anticipating strong interest from groups in the residential and living sectors given the flexibility of the building and evolution of the precinct.”

Recent transactions in the area include the 107-room Rydges on Swanston Melbourne, which sold for around $35 million and the new 4.5 star, 206-room, Vibe Hotel Melbourne, which sold for more than $106 million.

Decade-low supply underpins apartment investment

Melbourne’s inner-city apartment market, hit hard by the exodus of students and tourists last year, is now showing signs of joining the broader housing recovery, as downsizers and homebuyers return, pushing prices higher.

Melbourne’s inner city, where unit rents are back to 2010 levels, has almost halved its vacancy, which peaked at 14.6 per cent in October, to be at 8.6 per cent.

JLL’s head of residential research Leigh Warner said the divergence in performance across markets in recent months had been particularly evident in the rental market.

“The rental market, particularly for apartments, in Sydney and Melbourne is past the worst but still very weak and unlikely to fully recover until borders re-open,” Warner said.

“In contrast, rental vacancy in the other capital cities is now low and rental growth is rapidly re-emerging.”

During the past 12 months, Victorian building approvals of apartments, townhouses and semi-detached homes fell to their lowest figure in almost a decade.

Next year is expected to see new apartment completions in Melbourne decline by 55 per cent from the peaks of 2016—good news for apartment investors as median sale prices are expected to start to appreciate reflecting the looming shortage.

“With very long planning, marketing and construction lags involved in large apartment projects, this next wave of supply is still quite a few years’ away,” Warner said.

“The market will tighten significantly in the interim, particularly after borders re-open and migration resumes.”

HotelResidentialMelbourneAustraliaReal EstateSector
AUTHOR
Ted Tabet
The Urban Developer - Journalist
More articles by this author
website iconlinkedin icon
ADVERTISEMENT
TOP STORIES
Exclusive

Accor Deputy Delivers Verdict on Brisbane Games Hotel Shortfall

Phil Bartsch
6 Min
Qld Budget 2025-26 Brisbane City
Exclusive

Billions Promised, Now Deliver: Industry’s Qld Budget Verdict

Vanessa Croll
6 Min
Medium Density housing in NSW
Exclusive

NSW Budget ‘Groundbreaking’ $1bn Guarantee to Unlock Housing

Leon Della Bosca
7 Min
Exclusive

Azure’s Trent Keirnan on Playing the Long Game

Taryn Paris
5 Min
Exclusive

Private Credit Surge, Skittish Buyers Force Banks to Loosen Presale Rules

Taryn Paris
5 Min
View All >
Builder Hansen Yuncken has completed construction of ISPT and HESTA's latest addition to the St Vincent's Hospital Melbourne Precinct.
Life Sciences

ISPT, HESTA $140m Fitzroy Life Science Tower Tops Out

Marisa Wikramanayake
Not-for-profit BaptistCare is about to embark on one of its biggest projects to date, a 6.4ha development in Sydney’s north west with a capital investment value exceeding $2 billion.
Placemaking

BaptistCare Plans $2bn Precinct at Macquarie Park

Renee McKeown
TimePlace Manly shoptop
Construction

Time & Place Plans Second Manly Project as First Begins

Vanessa Croll
The Melbourne-based developer has advanced its push into Sydney, breaking ground on its high-end coastal shoptop at Manl…
LATEST
Builder Hansen Yuncken has completed construction of ISPT and HESTA's latest addition to the St Vincent's Hospital Melbourne Precinct.
Life Sciences

ISPT, HESTA $140m Fitzroy Life Science Tower Tops Out

Marisa Wikramanayake
2 Min
Not-for-profit BaptistCare is about to embark on one of its biggest projects to date, a 6.4ha development in Sydney’s north west with a capital investment value exceeding $2 billion.
Placemaking

BaptistCare Plans $2bn Precinct at Macquarie Park

Renee McKeown
2 Min
TimePlace Manly shoptop
Construction

Time & Place Plans Second Manly Project as First Begins

Vanessa Croll
2 Min
Ledlin Developments Somerville Business Park
Industrial

Ledlin Plots $13m Somerville Premium Business Park

Leon Della Bosca
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/pegasus-apart-hotel-melbourne-jll-listing