New Apartment Developments Melbourne 2026: 312-Unit Tower Approved

A 28-storey apartment tower at 456 Spencer Street in West Melbourne received final planning approval this week, adding 312 units to the pipeline and marking the latest in a string of inner-city projects cleared since the start of 2026.

The timing matters because net overseas migration into Victoria remains elevated and the state median house price sits at $920,000 while units average $620,000, pushing demand into established transport corridors where new supply has lagged for two years.

Projects tied to transport and university precincts

One scheme will rise beside the new Anzac station on the Metro Tunnel alignment, while another approved site sits two blocks from Swinburne University’s Hawthorn campus on Burwood Road. Both locations sit inside the City of Melbourne and City of Boroondara planning schemes, where height limits were adjusted in 2025 to encourage density near rail.

Council records show the Spencer Street project alone will deliver 18 affordable units through a Section 173 agreement with Homes Victoria, part of a wider target to add 1,200 social dwellings across the inner west by 2029.

Market signals and buyer implications

CoreLogic data released last month recorded 1,148 auctions across greater Melbourne in the final week of June, with clearance rates holding above 72 percent in the Bayside and Inner East postcodes. Off-the-plan pricing for the new West Melbourne tower starts at $585,000 for one-bedroom apartments, roughly 5 percent below comparable 2024 releases in the same postcode.

Buyers considering entry-level stock should review the updated VicPlan mapping for the two sites before the next stage of sales launches in August, and factor in potential body corporate levies that typically run $4,800 to $6,200 a year for towers of this scale.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.