THE walls are white, the carpet brown, the corridors long. It is eight floors of minimalism in a building that has all the ambience of a modern hotel. But for some people, it's home.
The first tenants of the new "Sienna" apartment complex sprawled along Mount Alexander Road on the old Lombards site in Travancore have started moving in.
For those who have bought one of these 240 apartments, it might be convenient inner-city living. There's a tram line on their doorstep, and a freeway. But if the new state government has its way, towering developments like these might be limited.
Sienna is the second of three stages of this development by Bensons Property Group. The first five-storey stage opened a couple of years ago and sold out. The second sold out too. When the third stage opens in 2012, it will be 25 storeys high, including eight car park levels.
It is this higher-density style of living that has some worried, including the new coalition government. Part of its election platform was to undo amendments by the previous Labor government that have made building high-rise apartments along transport corridors easier.
The Travancore apartments are mainly priced under $500,000 unthinkable for an inner-city detached house. With a shortage of affordable housing, the challenge for governments is how to supply more housing close to transport that people can afford and in areas where people want to live.
And the quandary for those trying to get into the market is do they buy a bigger house on the fringes where the social capital is poor, or a small apartment closer to the city?
"Middle-class save our suburbs groups have been very active in opposing these developments," says Terry Burke, professor of housing studies at Swinburne University's Institute for Social Research.
"It's a very self-interested movement because while they might call themselves a suburb, they might also call themselves a 'keep out the poor' movement, because there's no doubt that the shortage of housing is one of the major factors causing the affordability problem."
Professor Burke is in favour of greater density along the transport corridors but says there needs to be debate about the most appropriate form these developments take. "And my personal view is we should not be going up more than eight storeys in most suburbs."
Associate Professor Robin Goodman, from RMIT's School of Global Studies, Social Science and Planning, says medium-density housing is revitalising high streets in areas such as Northcote and Preston.
But she warns that it won't work everywhere. And nor is she in favour of higher developments. "We don't need anywhere near that height and density to fit growing populations into Melbourne's existing areas."
Recently resigned Moonee Valley councillor Rose Iser is among those opposed to the Travancore development.
Ms Iser, who ran for the Greens in the state election against former planning minister Justin Madden in the seat of Essendon, says the third stage of the building will be isolated in terms of its height, and out of context. "We need to have a more sensible approach so that there is good design backing up high density," she says.
But Bensons managing director Rick Curtis says the development is designed so that its highest part is closer to the city.
He says a balance between growth on the urban fringe and the inner city is necessary for affordability.
But the consequence of keeping the cost of apartments down is that they are shrinking. This means they are more likely to be rented out than occupied by their owners, who prefer more space.
Robert Pradolin, general manager of Australand Residential, which has developments in Carlton, Parkville and Burwood, estimates up to 80 per cent of apartments are rented out. "The developers are designing their apartments so that they can reach a price point in the market that attracts investors."
He says there is a social cost to smaller apartments. "If you want to live in the city you compromise size for the surroundings that you have and the amenity you have and the enjoyment of the hustle and bustle of city life. But when you start to have a family you need to weigh things up and look at what you get in the city versus the size of what you get in the suburbs."
HIGH RISERS
What some of the residents are saying
NUMBER 243
Mardi Corcoran, 23, and Craig Lacey, 23 She is a nurse at the Royal Childrens Hospital and he does waterproofing and roofing on commercial sites around the city. They cite convenience for deciding to buy an apartment here. If they go shopping at Queen Victoria Market, they catch the tram.
We wanted to be close to everything, she says.
You can do most things without a car, he says.
NUMBER 835
Jason Ye, 23 He is a pastrycook in Lygon Street and lets his younger brother live with him.
His apartment is close to the city and his workplace, and he drives or cycles to work. His balcony faces the freeway and to the right there is a view of the city in the distance. At night, he says, it is a pretty view, but he concedes it can be noisy on this side of the building. He loves the idea of buying a house but probably cant afford to right now and doesnt want to live too far out.
Ten kilometres away from the city would be fine, but further out Im not really interested.
NUMBER 465
Vicki Scott, 48 Lives with her son Joel, 15.
They moved after a divorce and have downsized from a huge house in Keilor to an apartment. She works in a shop in Tullamarine.
I always thought when I got a bit older I wouldnt mind a smaller place.
NUMBER 565
Amanda Zhang, 26, and Mike Wang, 26 He is a store manager in the city. She is not working currently because they are going to China soon to get married. When they return in a few months they will settle into their apartment.
He likes taking the tram to work because parking in the city is expensive. They say their apartment faces the main road, making it pretty quiet. This is important because she has trouble sleeping. They feel safe because the security is good but when they have children they will need a bigger place.
They like apartment living, but she says Australia shouldnt have too many high buildings because there is too much hustle and bustle .
Frequently Asked Questions about this Article…
What kind of apartment projects are being built along transport corridors and why should investors notice?
The article highlights developments like the Sienna complex — a 240-apartment project built close to tram lines and freeways — aimed at providing more affordable inner‑city living. Developers are targeting buyers and renters who value transport access and convenience, which can support ongoing tenant demand and resale appeal for everyday apartment investors.
How could state government planning changes affect high‑rise apartment investments?
The new coalition government said it would undo recent planning amendments that made building high‑rise apartments along transport corridors easier. That kind of policy change can affect future supply, planning approvals and the value of existing projects, so investors should be aware of local planning risk when considering apartment investments.
Are inner‑city apartments more likely to be owner‑occupied or rented out?
According to developers quoted in the article, many smaller inner‑city apartments are being designed to reach a price point that attracts investors. Australand’s general manager estimates up to 80% of apartments in some developments are rented out, so investor ownership and rental demand can be a prominent feature of this market.
What are the downsides of investing in smaller, cheaper apartments?
The article notes social and practical trade‑offs: smaller apartments are more likely to be rented rather than owner‑occupied, may attract younger or single tenants, and can be less suitable for families. Shrinking apartment sizes can also raise questions about long‑term resale and tenant turnover if occupants later seek more space.
What kinds of buyers and tenants are choosing these inner‑city apartments?
Profiles in the article include young professionals and couples who value proximity to work and transport, downsizers trading a house for convenience, and renters who appreciate security and city views. These groups are drawn by the amenity and transport access rather than large living spaces.
Does medium‑density or high‑rise housing work everywhere for cities like Melbourne?
Experts in the article say medium‑density housing is revitalising some high streets (for example, Northcote and Preston) but won’t work everywhere. Some academics argue we don’t need very tall buildings across all suburbs and that appropriate forms of density should be debated and planned locally.
How tall are some proposed stages of new developments, and what do experts recommend about height?
The Sienna development’s third stage is planned to be 25 storeys high (including eight car‑park levels). However, housing experts like Terry Burke suggest most suburbs should avoid buildings taller than eight storeys, arguing for limits on height in many existing areas.
How do developers justify building smaller, affordable apartments and what does that mean for investors?
Developers such as Bensons and Australand say balancing growth between the urban fringe and inner city helps affordability. To keep prices down, apartments are often made smaller so they hit an investor‑attractive price point. For investors, that means potentially steady rental demand but also considerations about tenant types, long‑term resale and the social trade‑offs of reduced living space.
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