Pet Spas Trump Pools as as Melbourne Apartments Evolve

Melbourne’s apartment developers are discovering that cold plunge pools and dog washing facilities now matter more than traditional gyms and rooftop terraces—but only half of the market knows it. Charter Keck Cramer national executive director of research Richard Temlett says build-to-rent operators know exactly what tenants want because they track it daily, while build-to-sell developers have almost no equivalent information about what features make buyers pay more beyond apartment size. “I speak with a lot of the build-to-sell developers now and they are, in a legitimate way, quite threatened by those projects and all that amenity,” Temlett tells The Urban Developer . Charter Keck Cramer research reveals a market sharply split along product lines. Apartments priced below $17,000 per square metre are moving quickly. Stock above this price sits unsold, often in the same projects where lower-priced units have cleared. The gap between sold and unsold apartments within individual projects now reaches $3000 to $5000 per square metre. “Stock at $17,000 to $18,000 per square metre or below is moving and moving very quickly,” Temlett says. “Above that price point it’s very sticky.” Sales are happening at $20,000, $25,000 and even $35,000 per square metre, but they’re slow. Unsold stock has dropped from about 1700 apartments at the 2023 peak to about 700 apartments in the second quarter of 2025, with an average of about 125 apartments being absorbed from the residual stock pool each quarter across Melbourne. ▲ Charter Keck Cramer national executive director of research Richard Temlett. This sounds like good news, but Temlett’s assessment is mixed. “It’s moving in the right direction but it’s not moving fast enough. The sooner it gets absorbed, the sooner the market will reprice and developers will be able to start launching additional projects at scale.” Configuration drive outcomes Apartment types perform very differently. Two-bedroom, two-bathroom apartments deliver the strongest results for build-to-sell projects, whereas one-bedroom, one-bathroom and two-bedroom, one-bathroom setups don’t work financially anymore. “From a feasibility perspective, you could do three apartments of all one-bedrooms, or two-bedroom one-baths 10 years ago but they’re not viable now,” Temlett says. “They cost more to build than the realisable revenues.” It’s the opposite for build-to-rent projects. Studios and one-bedroom apartments are the most popular rental products, achieving 30 to 40 leases per month and occupancy rates of 95 per cent to 98 per cent. Three-bedroom apartments struggle in both sectors. They move slowly in build-to-sell and need rental discounts in the build-to-rent space, according to Charter Keck Cramer research. Data reveals an ‘amenity gap’ Dog parks, pet washing facilities and co-working spaces have become essential for build-to-rent projects, according to Charter Keck Cramer research. Health and wellness amenities including cold and hot plunge pools and saunas are also in high demand. “Various amenities such as pet facilities and co-working are being very well utilised and are almost considered a ‘must have’ across these projects,” Temlett says. Build-to-sell research points to apartment size as the main sales driver. It doesn’t identify which features command higher prices. The research barely mentions traditional amenities like gyms, pools or rooftop terraces. Sustainability features don’t appear as sales drivers at all. ▲ Mirvac’s $1.8-billion build-to-rent project LIV Aston has a dog park on the terrace. The knowledge gap is creating competitive pressure as build-to-rent amenity offerings influence buyer expectations. “They’ve started to go, ‘Well, we may not match them with all the amenity, but let’s at least improve the amenity’ because a lot of those build-to-sell units will go to investors in Melbourne and the investors need to rent these out to tenants,’” Temlett says. Health and wellness replace traditional ‘go-to’ offerings Build-to-rent operators are driving the shift away from traditional pool-and-gym combinations. Their operational data shows tenants want different amenities. “There is a growing trend that I think is here to stay—there’s a millennial base that doesn’t drink or smoke like previous generations and so they’re more focused on mental health, exercise and community,” Temlett says. Build-to-rent operators are also moving amenities from upper floors to ground-level podiums. They’re building entire floors with flexible infrastructure that can adapt as tenant preferences change. “They have partitions that they can either change for different parts of the day. You can have dining rooms or gyms, but also as trends change. Who knows? Maybe in five years health and wellness won’t be such a drawcard. So, the owners can change floorplans and configuration later to suit new trends at less cost,” Temlett says. Laws now make it easier for tenants to keep pets, which has increased demand for pet facilities in build-to-rent projects. “You’ve seen the residential tenancy legislation that now allows people to have pets. If anything, that’s the biggest driver now,” Temlett says. Delete Some current build-to-rent projects may have gone too far on the amenity front. “I must admit I think some of the build-to-rent buildings right now are over-amenitised. There’s just too much amenity in there,” Temlett says. “I don’t think that they’re going to get a good return on investment. Those are learnings the next wave will benefit from.” Pandemic changes force BtS response Build-to-rent operators responded quickly to pandemic-driven changes. Basic features from their projects are now appearing in build-to-sell developments. Parcel lockers for online deliveries and security apps are becoming standard across both sectors. “Simple things like storage, parcel lockers, pet facilities, dog washing facilities—those I almost think are necessities now,” Temlett says. “You’re responding to structural changes that occurred through the pandemic.” Build-to-rent operators identified working from home as a permanent shift early. They incorporated dedicated workspace into their apartments, which build-to-sell is now copying. Storage needs have also changed. “They really value internal storage. They hate storage cages,” Temlett says. “So having proper internal storage and enclosed storage in basements is almost a prerequisite.” Apartment sizes have grown to justify higher prices. One-bedroom apartments now start at 55sq m and go to 70sq m, compared to the traditional 50sq m standard. Two-bedroom apartments have grown to 90sq m or 100 square metres. Three-bedroom units now exceed 115 square metres. “To command that sum of money, you have to have liveable, larger apartments now to be attractive to buyers,” Temlett says. ▲ Indi Southbank, owned by Oxford Properties Group and managed by Investa, focused on amenity that connected its 434 residents. Data shows what matters Buyer research shows quality assurance matters more than specific amenities. Victorian buyers want proof of quality build as their top priority. They want guarantees that construction will finish, promised completion times, and testing reports for acoustics, waterproofing and structural engineering. Sustainability is important but expensive. “Unfortunately, the buyers say they like it but can’t pay so much more per week to have it,” Temlett says. Off-the-plan stamp duty breaks for unsold stock in 2021 and 2022 worked well. “I’m convinced that if we actually bring back those incentives, it’ll make the product even more attractive,” Temlett says. Build-to-rent’s operational advantage is clear, Temlett says. Operators have detailed data about what tenants want from running their buildings. Build-to-sell developers don’t have the same feedback about what features make buyers pay more beyond size and layout. The gap reveals more than just missing data. Temlett says it exposes a shift in how apartments should be marketed and designed. Build-to-rent operators understand this instinctively because their tenants demand it. Build-to-sell developers need to catch up. “They need to stop trying to sell it as an investment commodity. Sell it as a home,” Temlett says. “Sell it as a lifestyle, as space that people are wanting to live in. “That co-working space or having a multi-purpose room, that’s another huge trend, which is basically like half a bedroom where you can have a proper desk in a one-bedroom apartment because people do work from home. “That’s the reality. These are structural changes and it’s silly not to acknowledge that this is here to stay.”

Pet Spas Trump Pools as as Melbourne Apartments Evolve

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