Melbourne, January 2025 – Salvo, a prominent property developer, has commenced demolition activities to pave the way for a new 56-storey residential tower in Southbank labelled Moray House. This development marks one of Melbourne’s few high-density projects to move forward this year amid a challenging market landscape.
Demolition efforts are focused on removing a two-storey commercial building that previously served as Salvo’s head office before the company relocated to new premises on City Road. Groundworks and construction are scheduled to begin in January, with project completion anticipated in early 2027.
Since its launch a year ago, the project has garnered significant interest, with 93% of the apartments already sold to a mix of owner-occupiers and investors. This high demand underscores the appeal of urban living in thoughtfully designed spaces equipped with premium amenities and proximity to existing social infrastructure.
Salvo Managing Partner James Maitland expressed optimism, stating that the development milestone would help boost confidence and generate momentum within Melbourne’s apartment market.
“At a time when far fewer apartments are being built, we’re delighted to move ahead with this stunning addition to the city’s skyline. Melbourne desperately needs accelerated supply of well-designed homes with outstanding amenity in prime locations where people want to live, work and play. As a trusted developer that’s built 4,000 apartments, we’re delivering on that.
“Given worsening affordability and cost of living issues, it’s crucial to progress large-scale projects that deliver quality, affordable apartments which are an important mix in the housing puzzle.”
Designed by Rothelowman architects with interiors by David Hicks, the $220 million development occupies a 1,200m² island site at 42 Moray Street, positioned at the intersection of South Melbourne and Southbank. The tower will house over 300 apartments in one, two, and three-bedroom layouts, along with two exclusive double-storey penthouses crowning the upper levels.
The 180-metre structure will also feature six levels of office spaces, 400 square metres of co-working facilities, and two floors dedicated to luxury amenities centered on wellness and relaxation. Residents will enjoy hotel-grade reception services, a ground-floor café and bar, a luxury day spa, a yoga room, a pool, a gym, private dining areas, residents’ lounges, and outdoor barbecue terraces.
Apartments in the development promise uninterrupted panoramic views of Melbourne’s skyline, Albert Park Lake, and Port Phillip Bay. The residences are designed with abundant natural light, neutral color schemes, and refined finishes, offering warm and sophisticated living spaces.
The project, named Moray House, is the latest addition to Salvo’s extensive portfolio, which includes the completion of 4,000 apartments and a pipeline of another 4,000 valued at $3 billion.
This milestone comes against the backdrop of a growing gap between housing approvals and construction starts in Melbourne. Approximately 20,000 approved apartments remain unbuilt within the city. Melbourne’s draft target under the Victorian Government’s Housing Statement calls for the delivery of 134,000 new homes by 2051. Achieving this target will require a 122% increase in housing stock over the next 27 years, according to the City of Melbourne.
“Southbank continues to evolve as a vibrant locale at the cultural and entertainment centre of Melbourne. Moray House is set to further enhance the urban fabric of this precinct, where residents will be able to enjoy a blend of convenience, culture, and community,” Maitland said.
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