With 115,433 dwellings having been approved for construction over the past two years and house prices having increased by almost seven percent over the past year alone, the Greater Melbourne area has been a hotbed of residential development activity and capital value appreciation in recent times.

With that, however, has come fears about oversupply, particularly in inner city apartment markets. That raises questions about the outlook for Melbourne’s apartment market, where the best development opportunities are and what home owners in Melbourne are looking for in terms of their dwelling types and living preferences. In a…