SP Setia Breaks Ground on A$940 Million Atlas Melbourne Tower, Appoints Multiplex as Builder
KUALA LUMPUR — SP Setia Bhd broke ground on Atlas Melbourne, a 73-storey residential tower at 383 La Trobe Street in Melbourne's central business district, on Sept. 17, 2026, and announced the appointment of Multiplex as the project's head contractor.
The development carries an estimated gross development value of A$940 million (RM2.6 billion) and comprises 858 residences. Since its October 2024 launch, 64% of those residences — approximately 549 units — had been sold ahead of construction commencing, providing a substantial presales base as the project moves into its build phase.
Victorian Minister for Planning Sonya Kilkenny MP attended the groundbreaking ceremony as guest of honour, alongside SP Setia chairman Tan Sri Syed Anwar Jamalullail.
Project Details and Construction Timeline
Atlas Melbourne will rise 73 storeys at 383 La Trobe Street. The building is designed as a residential tower above a podium containing ground- and first-floor retail, foyer space and resident amenities. Planned facilities include the Sky Club on Level 72, the Horizon Collective and a wellness club.
Apartment sizes range from studios of 29.2 to 40.2 square metres to one-, two- and three-bedroom apartments of 50.1 to 195.2 square metres, sub-penthouses of 211 to 444.1 square metres, and a penthouse of 349.5 square metres. At 858 residences and an estimated GDV of A$940 million, the implied average development value is approximately A$1.10 million per residence.
Construction is expected to span 52 months. Initial residential handovers are targeted for September 2029, with final handover scheduled for December 2030.
Multiplex Appointment and Prior Relationship
SP Setia selected Multiplex based on the builder's prior track record with the developer. Multiplex previously delivered SP Setia's Sapphire by the Gardens project in Melbourne on time and within budget, a history that Syed Anwar Jamalullail cited as a factor in the appointment.
"Today's milestone reflects Setia's disciplined international growth and our commitment to developing quality, well-connected urban communities. Atlas builds on our established Melbourne portfolio and supports the city's housing supply at a time when demand for inner-city residences remains resilient," Syed Anwar Jamalullail said at the groundbreaking ceremony.
The project is located near RMIT University, the University of Melbourne, Melbourne Central and Flagstaff Gardens, positioning it to draw demand from students, university staff, young professionals and investors seeking access to the CBD's employment, retail and public-transport networks.
Melbourne Market Context
Atlas Melbourne is advancing into a market shaped by elevated construction costs and mixed price signals. Melbourne construction costs rose 54% from A$4,708 per square metre in the first quarter of 2021, making presales certainty and contractor relationships more critical for large apartment developments.
Melbourne's median apartment price was reported at A$620,000, up 2.9% year over year, in a first-quarter 2026 market review, while a separate second-quarter 2026 report recorded a 2.1% quarterly decline in Melbourne's median unit and apartment price to A$643,500. Apartment rents in greater Melbourne were reported at approximately A$575 per week, above the A$570 per week median house rent, supporting demand for well-located inner-city apartments even as sale prices remain uneven.
Atlas is described in market coverage as the first major Melbourne CBD residential project to commence construction in more than five years, a distinction that positions it as a potential indicator of whether presales and project economics are sufficient to restart large-scale CBD apartment supply after a prolonged period of constrained development.
SP Setia's Broader Australian Pipeline
SP Setia characterized Atlas as part of a longer-term Australian expansion strategy. Beyond the Melbourne CBD tower, the company's Australian pipeline includes master planning for three towers on a 6,500-square-metre site at the former Carlton United Brewery precinct in Melbourne, as well as an apartment project in St Leonards, Sydney. The company was expected to launch sales at the Carlton site and the St Leonards project during the fourth quarter of 2026.
The strategic importance of new Australian launches is underscored by SP Setia's first-half 2026 financial performance. The company's revenue declined 4% year over year to RM1.65 billion, while EBIT fell 8% to RM504.2 million, with the decline attributed partly to the nonrecurrence of contributions from completed Australian projects. New property sales totaled RM1.42 billion in the first half, approximately 31% of management's RM4.6 billion full-year 2026 sales target.
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