Little more than 20 years ago, Melbourne's apartment market was virtually non-existent. The Great Australian Dream of a three-bedder with a backyard was alive and well. The Rialto was the city's tallest skyscraper and it was home to offices, certainly not apartments.
So how did Melbourne become an epicentre of vertical living?
It kicked off in 1994 when residents moved into the eight-storey Karl Fender designed Melbourne Terrace - a virtual low-rise by today's standards. On the corner of Franklin and Queen streets near the Queen Victoria Market, the 25 metre-high building signalled the start of what marketing departments now call "sky living".
The St Kilda Road precinct took up the trend with the swanky Melburnian, at 23 storeys, in 2001 and the prestigious 42-level Royal Domain Tower in 2005.
Powered by international buyers, ambitious architects and a shift in the way we look at what makes a house a home, Melbourne embraced apartment living. It is quite literally a city on the up.
A godfather of CBD residential development, Max Moar??? recalls the warnings he was given while developing the former police headquarters on the corner of Russell and Latrobe streets.
"The general consensus was it was oversupplied and the city would never work with so many apartments and so on," he says.
"What makes the great cities of the world great is the fact that people live in it. Melbourne on the weekends used to be dead, unless you went to a show or a movie there was nothing else in Melbourne. No shops open, nothing.
"Now the city is full of residential development and people live in the city, the city has come alive."
Max Moar, a godfather of CBD residential development.
Photo: Josh Robenstone
Daniel Novakovik, 38, and partner Monica Zhang, 35, will soon move into the penthouse at The Evermore - a 24-level tower on Dorcas Street, Southbank. It will become the eighth apartment they own and certainly the most opulent.
"Essentially it's a house in the sky," Daniel says.
"You've got cityline views that I don't think will go away for a long time and everything is at our doorstep. You can walk down to the gallery and you have events like White Night just down the road."
Despite widespread speculation of an apartment oversupply, Daniel expects the value of his property portfolio to continue increasing.
"We see them as bluechip stock, I mean the price of Melbourne compared to Sydney - it's crazy cheap," he says.
Daniel Novakovic and Monica Zhang will soon move into the penthouse at The Evermore.??? Photo: Wayne Taylor
As Melbourne's skyline has risen, so too have its penthouse prices.
The penthouse at Australia 108 sold for $25 million in 2015. The sale of the 100th-floor, 750-square-metre luxury pad was a national record for apartments in Australia until it was eclipsed by a $27 million sale in Sydney last year.
At 319 metres tall, Australia 108 pips the 297 metre-tall Eureka Tower to claim the throne as Melbourne's tallest skyscraper.
Australia 108 selling agent Andrew Leoncelli??? at CBRE says it's unlikely Melbourne will become home to anything taller or higher-density.
"We've basically gone through the highest density period of Melbourne's history and I don't think it's ever going to get repeated," he says.
Australia 108, Southbank: Agent Andrew Leoncelli of SBRE says it's unlikely that Melbourne will get anything taller or higher-density. Photo: John Gollings
Even if the apartment market softens, the acceptance of apartments is now greater than ever, particularly for downsizers.
"Apartments give mature older buyers a real opportunity to downsize in a meaningful way and provide that missing chunk of their superannuation which they haven't got from the last five to 10 years through the sharemarket," Leoncelli says.
A 16th-floor apartment at the prestigious Lucient complex, designed by Moar's firm Lustig and Moar, is currently on the market for around $3 million. With three bedrooms, two bathrooms and a separate powder room, the St Kilda Road apartment has a vista out to the Dandenong Ranges and the private main bedroom balcony looks over Albert Park Lake.
Even when the sun isn't shining, Lucient residents can make the most of outdoor spaces in their private winter garden - an indoor space framed by floor to ceiling retractable glass sliding doors.
Lucient complex, designed by Max Moar's firm Lustig and Moar. Photo: Supplied
The trend towards maximising outdoor spaces has persisted as developers continue to refine apartment living. Melbourne Quarter, the $2 billion urban renewal project at the Docklands, will feature an elevated "skypark".
Along with swimming pools and private dining areas, new apartment projects have come to resemble all the convenience and exclusivity of five-star apartments.
"Our customers expect a comprehensive apartment offering, which might include open floor plan layouts for social spaces, ample storage in residences and basements, and health-conscious building amenities like a gym or swimming pool," says Ben Christie, head of apartments for Lendlease's urban regeneration business.
"There is also a growing demand for concierge and hotel-style offerings as time-poor residents use these services to cut down on chores and free up leisure time."
Download the Domain app to search for apartments in and around Melbourne CBD.
