Instead of delaying work, several residential groups press ahead with large towers that will take years to deliver, effectively betting that today’s economic jitters will have passed by completion. Their confidence stands out because many investors now pull back from new commercial buildings amid a darker outlook. These groups see demand for inner-city apartments holding up and they are acting on that view.
Behind this push are Gurner Group, Sterling Global Property Group and Malaysian-backed OSK Property, all committing billions of dollars to residential projects in Victoria’s capital. The focus is squarely on apartment towers, not office or retail developments, which have become harder to justify as conditions soften. Developers expect that by the time construction wraps, population growth and housing undersupply will support strong buyer demand. They are also banking on cost pressures easing further over the build cycle.
A key part of their strategy involves working closely with construction partners and locking in arrangements designed to ride out price swings. Developers highlight that supply chains keep shifting and some crucial building inputs are already showing signs of stabilising after sharp increases. Longstanding relationships with contractors allow more flexible contracts, which can be adjusted to changing market conditions. This collaborative approach aims to protect project viability across cycles rather than relying on short-term cost conditions.
If these bets pay off, Melbourne could see a wave of new apartment stock arrive just as the broader economy looks steadier and housing demand intensifies. The move contrasts sharply with the more cautious tone across the commercial sector, where many projects stall or get shelved. The tension now centres on whether construction costs keep easing fast enough to reward this early optimism.
