Who knew that the walls of former breweries, factories and mills would become one of the most irresistible apartment styles to own and occupy in inner Melbourne.
Warehouse apartments are unique in that they successfully and seamlessly merge historic and trendy. Characterised by their exposed brick walls, steel trusses, sleek interiors and impossibly high ceilings, warehouse style apartments are limited in supply, further adding to their appeal.
In this bulletin, Secret Agent examines inner Melbourne’s warehouse apartment market.
Exactly how rare is the warehouse apartment?
Out of the 1,276 apartments in our latest index, only 65 sales were warehouse conversions. While this may not accurately reflect supply, it does indicate that warehouse apartments make up a very small segment of what is currently available (around 5% of total apartments). As supply is low, demand is high. The reality is that there is always going to be competition around warehouse conversions. To have the upper hand, a deeper understanding of these apartments is essential.
Where to find them?
If you’re looking to buy a warehouse apartment in a specific region of inner Melbourne, these are the suburbs where they are commonly found. Warehouses conversions are rare in the inner South.
Inner North: Collingwood, Fitzroy, Brunswick
Inner East: Abbotsford, East Melbourne, Richmond
Inner West: Kensington
Central: Melbourne (around Flinders Lane)
Table 1 summarises the price per square metre rates of warehouse apartments, according to the number of bedrooms, compared to the average rates of apartments across inner Melbourne. Table 2 compares the difference between the size of warehouse apartments and general apartments in inner Melbourne.
The price per square metre of warehouse apartments is comparable to the inner Melbourne average. Looking at individual suburbs reveals where the more expensive warehouses are located. Based on Table 1, 2 bedroom warehouse apartments in Fitzroy ($10,007/sqm) and in Abbotsford ($9,639/sqm) sell for above the average of $8,297/sqm. The most affordable 1 bedroom warehouse conversions can be found in Richmond ($7,581/sqm).
Warehouse apartments are generally the biggest type of apartment, compared to Art Deco, 60s-80s brick and post-90s developments. On average, they are around 30% bigger. Note that this is based on floor area, they are also bigger in total volume due to their higher ceilings.