Since Melbourne was first founded by John Batman in 1835, we have seen residential communities and their buildings develop in the City and surrounding areas in a variety of ways; Houses for the establishment and pastoralist families, workers and visitors.
The period of the Gold Rush from 1851, saw rapid growth in population and wealth, and the establishment of our Parliamentary and Public buildings. By the mid 1880’s Melbourne was one of the richest cities in the world.
The crash of the local property market in 1889 caused the first Depression in our city’s economy (sound familiar). However, development didn’t stop. Melbourne’s population has continued to grow. Now at 4.8 million the population is increasing by some 3.7% – some 185,000 per year, and all these new people need somewhere to live
So why is the property market depressed now?
I am not an economist– or a demographer – but an Architect who has experienced these cycles before
The population has grown, and we have seen a rapid increase in property values due to the lack of affordable housing. We need to have places for people to live at an affordable level. And of course more expensive housing for those looking to ‘upgrade’ their living environment
The downturn in property prices is a ‘correction’ on the ‘overvalue’ of our rising market, but people still need to be housed.
I have seen these cycles before. Most notable when I first started my previous practice; Walker and Yerondais Architectural Partnership, in the late 80’s early 90’s. The ‘recession we had to have’.
During this time, we had recently set up our new office in Little Latrobe street, with a number of significant residential and commercial projects on the go – pretty impressive for a couple of ‘young’ architects.
But it didn’t last long. The Banks got nervous and stopped their funding on previously agreed projects. Almost overnight the building industry crashed. Banks took punitive action against developers and sent many broke.
People still needed to be housed. Our type of architectural commissions changed to suit the then current economy. Rather than upgrading their residence – families where extending and renovating.
There was huge increase in residential refurbishments.
The biggest difference between then and now, is the population growth was much slower, and successive governments stopped spending on public buildings, and even sold off the public assets that they had.
For now, Developers are being cautious. Banks have slowed down money availability, and do not want to cause a repeat crash of the 1990’s
Property prices are ‘adjusting’. Bigger differentials in the higher income and ‘over priced’ suburbs of the inner east and south east, and more stability on the ‘affordable’ suburbs of the north and west.
So are there development opportunities in a downward market?
Of course there are – its all about getting the feasibility right
We can assist investors with preparing feasibility options for development, analysing the market trends and requirements, reviewing all local authority regulations, and establishing suitable yields, and of course designing a building that will achieve suitable return.
The situation is very different now when compared to the 1990’s. Population increase predictions suggest we will reach 5,000,000 in 2020. Population growth means there will be a continuing demand for housing, and commercial industries to service the increase in population.
Affordable housing is required to meet the population growth, for home buyers and renters
Well designed housing at more affordable prices are required in all sectors of the Melbourne market.
If you are looking to upgrade your families living conditions, but nervous about buying and selling in a downward market, you can still accommodate your family in the best conditions. There are opportunities to extend and renovate your home. Purchase a ‘cheaper home with the view to extending within a reasonable budget, to see you into the foreseeable future. Careful design and cost planning will ensure value continuing into the future.
So if you are nervous or unsure about preparing for a property development, or even what to do as your family outgrows your current home; let us help you with a feasibility study first. We can then demonstrate the costs and returns involved to assist you in the decision making process for moving forward.
Barbara Yerondais
BY Projects Architecture
10th April 2019
I highly recommmend the team at BY Architecture.
Barbara, Howard and the team designed a wonderful extension to my late 1960s Melbourne home, ran the tender process to find me a builder, and superintended the build contract.
The design process that Barbara took me through was comprehensive, well-considered and highly collaborative, and the resulting extension and renovation was incredibly well-tailored to my specific needs and desires.
The tender process was similarly well-run, and we ended up choosing a builder that Barbara had worked with many times before and recommended. The recommendation was a great one and the entire build ran very smoothly, with the many quirks arising in a typical renovation being dealt with intelligently and with no fuss.
During the entire time I worked with them, Barbara and her team went over-and-above to keep me happy. As a result of their attention to detail and their focus on customer service, they ensured that what can often be a stressful time was actually a pleasure. I cannot thank them enough and would work with them again in a heartbeat.
Barbara, Howard and the team designed a wonderful extension to my late 1960s Melbourne home, ran the tender process to find me a builder, and superintended the build contract.
The design process that Barbara took me through was comprehensive, well-considered and highly collaborative, and the resulting extension and renovation was incredibly well-tailored to my specific needs and desires.
The tender process was similarly well-run, and we ended up choosing a builder that Barbara had worked with many times before and recommended. The recommendation was a great one and the entire build ran very smoothly, with the many quirks arising in a typical renovation being dealt with intelligently and with no fuss.
During the entire time I worked with them, Barbara and her team went over-and-above to keep me happy. As a result of their attention to detail and their focus on customer service, they ensured that what can often be a stressful time was actually a pleasure. I cannot thank them enough and would work with them again in a heartbeat.
Barbara is very friendly and easy to work with. Thank you for the great advices.
Response from the owner 23:14 17 Jun 24
thank you Arik. Happy to be helpful 
Barbara and the BY Projects team were fantastic to work with for our knockdown-rebuild. We had no idea what we were doing or getting ourselves in for, and through every stage of the process Barbara explained everything and was supportive and transparent.
She drew plans for a beautiful house for us which fulfilled everything we wanted while adding such flair and style that we never could have imagined ourselves.
I was so glad to have her and her team on my side throughout the build process, as we would have struggled to advocate for ourselves (or even notice) mistakes or defects by the builder.
Overall, we just couldn’t be happier with the final result.
She drew plans for a beautiful house for us which fulfilled everything we wanted while adding such flair and style that we never could have imagined ourselves.
I was so glad to have her and her team on my side throughout the build process, as we would have struggled to advocate for ourselves (or even notice) mistakes or defects by the builder.
Overall, we just couldn’t be happier with the final result.
Response from the owner 06:53 31 May 24
Thank you for your enthusiasm Emily. And thank you for trusting us with your dream Home. It's been a pleasure working with you and your family, and we trust you will enjoy your home for the years to come. 
We recently had the pleasure of carrying out a renovation for Barbara and BY Projects Architecture.
The project ran very smoothly from receiving the plans, to handover day.
Barbara pays very close attention to detail and takes great pride in her work.
We look forward to working with BY again on future projects.
The project ran very smoothly from receiving the plans, to handover day.
Barbara pays very close attention to detail and takes great pride in her work.
We look forward to working with BY again on future projects.
Response from the owner 22:11 30 Mar 21
Thank you Koray. It was a pleasure working with AMCON Homes, we look forward to working with you again in the future. 
Barbara provided excellent professional advice regarding Town planning and approval process by the Council. She went out of her way to find the right information and help me. Will surely use their services again when necessary.
I would highly recommend them.
I would highly recommend them.
Response from the owner 01:37 16 Feb 21
Thank you Jarardhan. We do hope you find a more suitable site soon to build your dream homeBarbara 
We were in a very difficult position after a VCAT rejection. Barbara came into our project and reimagined what was possible with our property. Going from a house with three shops with significantly reduced value to a development with two town houses, a cafe and all able to be subdivided into three separate properties. Barbara was positive, enthusiastic, charming at planning meeting and all in all kept us positive and hopeful. Barbara went through the whole process with us and I would say went above and beyond what would generally be expected. She worked well with our development team, working out strategies for planning challenges. We are very thankful for her time and energy.
We engaged Barbara and her team many times over many years for our Building Development Projects, including Multi Residential, Child Care and Mixed Use. Most recently for a couple of houses in Port Melbourne with complex Heritage Overlay requirements.
Barbara worked with us closely to ensure all design requirements were achieved to exceed market expectations. All permit requirements were managed in a professional and timely manner, and all processes were met on time and on budget.
The finished buildings were outstanding and the realized sales well above market expectations.
We highly recommend BY Projects Architecture for their Design sense and construction experience.
Barbara worked with us closely to ensure all design requirements were achieved to exceed market expectations. All permit requirements were managed in a professional and timely manner, and all processes were met on time and on budget.
The finished buildings were outstanding and the realized sales well above market expectations.
We highly recommend BY Projects Architecture for their Design sense and construction experience.
I have worked with Barbara and the team at BY Projects on a number of projects now. Its hard to think how you could get better value for money. They are great architects - that goes without saying. But its the extra mile they go to on your behalf in order to secure the very best for you that makes all the difference. I wouldn't hesitate to recommend them for your next project.
Response from the owner 06:02 24 May 19
Thank you Virginia for your kind words. It is always a pleasure working with you. 
