Michael McCormack: Milieu Property’s co-founder on building design-led apartments

By Tim Benjamin

If you’re interested in how good design can bring joy to apartment living, you need to meet Michael McCormack.

He’s co-founder of Melbourne real estate developer, Milieu Property.

Started ten years ago, the business has developed a reputation for crafting beautifully conceived apartments.

And a cult-like following amongst the creatives who typically own (and occupy) them.

Not surprisingly, Milieu’s engaging buildings have also won a string of important architecture and design awards.

Property development aside, Milieu has also joined Melbourne’s buzzy hospitality scene by opening a collection of celebrated restaurants, cafes and bars.

In today’s interview, Michael shares with you how he creates places – and experiences – people love.

And how he makes money along the way.

Listen now and you’ll learn:

Why he likes developing apartments.
How he uncovers what his customers want.
How he acquires the right sites.
Why he collaborates with a variety of capital providers, architects and interior designers.
How he selects companies to construct his buildings.
How his sales and marketing system works.
Why he set up a hospitality division.
What’s next for apartment living in a post-Covid world.
And MUCH more…

Listen on Apple Podcasts, Spotify, Google Podcasts – or right below:

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Time stamps for topics in this episode:

0:00| Intro.
1.04| How Michael became interested in the built environment.
2:17| How he started life as a carpenter – then went to university where he obtained a Masters degree in Construction Management. And a Bachelor of Laws degree.
6:06| How he worked for other property developers before launching Milieu.
8:00| Why he prefers building homes for owner-occupiers (rather than for investors).
9:10| How he launched Milieu to solve his own housing problem.
10:30| Who his target customer is.
11:30| Why he chose to start by developing apartments in north Melbourne.
12:25| How many developments they’ve completed.
13:10| How the ownership of his business is structured.
14:00| What kind of person buys a Milieu apartment.
15:47| How he uses market research to understand what potential buyers want.
19:30| What role community plays within his properties.
20:55| Why his developments have few common amenities.
21:55| How he finds development sites.
23:52| How he decides what kind of building to erect on a site.
26:17| Why he likes partnering with third party capital providers, architects and designers.
30:25| Who does his construction work (and why it’s changed over time)
34:40| Why Milieu operates restaurants, cafes and bars.
38:00| How Milieu builds awareness of its developments amongst potential buyers (in-detail).
43:50| How his sales process works (in-detail)
55:35| How existing owners of Milieu apartments typically sell into the secondary market
56:35| Why he stays in touch with people who’ve already bought a Milieu apartment.
58:25| How feedback from past buyers informs his future developments.
1:00:00| How Covid is shaping trends in buyer demand (including where people now want to live and what kind of accommodation they want).