Salvo, a Melbourne-based property developer, is set to commence demolition on a prime Southbank site to make way for a 56-storey residential tower, marking its first major development since the pandemic.

The project, named Moray House, will be built on a 1,200 square metre island site at 42 Moray Street, which Salvo acquired in 2017 for $16 million.

Designed by architects Rothelowman and interior designer David Hicks, the 180-metre skyscraper will feature 305 apartments, including one, two, and three-bedroom configurations, as well as two double-storey penthouse suites.

The development will also boast extensive amenities, including a hotel-grade reception, ground floor café and bar, eight floors of commercial office space, and two floors dedicated to wellness facilities.

James Maitland, Salvo’s Managing Partner, emphasised the project’s focus on creating a vertical community with resort-style amenities that cater to residents’ health and wellbeing.

The development will include a luxury day spa, yoga room, pool, gym, private dining rooms, residents’ lounges, and outdoor terraces.

Moray House aims to address the growing demand for housing in Melbourne, with Maitland noting that over 16,000 dwellings are required in the City of Melbourne alone over the next three years.

This comes at a time when apartment supply in Melbourne has reached its lowest point in a decade, with only 2,600 new apartments launched in 2023, according to Charter Keck Cramer data.

The project is part of Salvo’s $3 billion development pipeline, which includes other significant projects such as a $1 billion four-tower mixed-use development at Fishermans Bend and a $1.2 billion mixed-use urban renewal project at the Pentridge precinct in Coburg.

Construction of Moray House is scheduled to begin later this year, with completion expected in late 2026.

The development has already secured $150 million in pre-sales, with 240 of the apartments sold and the entire project valued at $220 million.

Salvo has established a strong presence in Southbank over the past decade, delivering six high-density residential projects comprising almost 2,000 apartments and commercial spaces totalling $1 billion.

With Moray House, the company continues its commitment to transforming Melbourne’s skyline and addressing the city’s housing needs.