The shady verandah is a staple of Australian housing design and now it has been reimagined to fit apartment living. Borrowing the themes of an open-air space where the family comes together, this 21st-century adaptation of the humble verandah is the signature mark on this new development.

Yarra One is the latest addition to South Yarra's Forrest Hill precinct - an area designated for high density living by the local council.

The 26-level tower brings 268 apartments to the precinct along with a ground-level atrium. This much-needed addition to public space also provides a link between South Yarra train station and Daly and Chapel streets.

Karl Fender, founding director of Fender Katsalidis Architects, says the unique space is a plus for the residents of Yarra One and the wider community.

"We see this as being one of the key attributes for the project," he says.

"The project is very benevolent to the public realm, making Claremont Street have a whole new character.

"So as you go down Claremont Street you come across this space, which is so unusual, it's unlike anything - there's no similar place in Melbourne.

"It's really about place making and community benefit."

Given its upmarket location in a community where design is celebrated in the fashion and food on Chapel Street, creating a cutting-edge space was non-negotiable.

The open-air space is dominated by exposed timber, which forms a web of latticework overhead. During the day it creates a dynamic pattern of shadows and by night, it will be lit up to become a silhouetted structure.

The timber is juxtaposed by metallic pylons and large white steps cascading in amphitheatre fashion to a ground-floor stage.

Greenery can be found in suspended planter boxes and interspersed throughout the seating.

The sum product is a community space that relieves the high-density surrounds, Fender says.

"This is where public gather - performance, meeting, greeting, coffee society - just a fabulous place for the residents to come down and enjoy and mix with the community at large," he says.

"That big lattice you see is where that walkway just expands out in volume, width and dimension and makes a fantastic community room, which is set up to be enriched by retail, cafes and also, the seating tiers down to a little stage on the ground floor so it can be a place for performance.

"There's a general theme of timber throughout the ground and the whole structuring of the space, which is quite symbolic of residential housing typologies. It's like the verandah, there's planting growing up, incredible shade patterns, filtered sunlight.

"All of those qualities that will make it an ever-changing, fantastic place to be."

The tower itself has been positioned to take in views of the city skyline and stretching across to the north and east. The enviable view can be seen in all its glory from the rooftop, where fire pits and lush gardens enhance the experience.

The Forrest Hill precinct has evolved since 2005 when the Stonnington Council devised a masterplan to oversee the replacement of light-industrial buildings with apartments, offices and retail.

A warehouse used as the headquarters of men's fashion label Roger David will make way for Yarra One.

Forrest Hill is named after Charles Forrest, who once owned the land now occupied by Melbourne High School. The precinct is bound by Toorak Road, Chapel Street, Alexandra Avenue and Yarra Street.

Rezoning here opened opportunities for 50 development sites and by March last year, a report by Charter Keck Cramer showed 30 had been fully developed providing approximately 3000 apartments. Another 2500 apartments were still in the pipeline.

The young, professional demographic at Forrest Hill - 42 per cent of residents are aged between 25-39 years and 60 per cent are either professionally or managerially employed according to Charter Keck Cramer - makes it a prime target for investors as well as owner-occupiers.

Combine this with South Yarra's proximity to the city, its public transport linkages and the vibrant culture, and you have a highly sought-after location, says CBRE managing director Andrew Leoncelli.

"This is a great pocket where you can get lots of young people, high-end restaurants, cafes, great lifestyle, super connectivity but without disturbing the beautiful tree-lined streets of South Yarra," he says.

The apartments are accentuated by a host of shared spaces including a ground floor eatery, reinforcing the atrium space as a real gathering place.

Inside, there's a communal lounge, dining and library positioned to take advantage of surrounding landscaping. The wellness and relaxation centre includes a bath and outdoor spas, there's also a gym, yoga studio and private wine cellars.

Interiors are distinguishable by the small, but refined details such as herringbone timber floors and bedrooms with integrated shelving, robes, drawers and dressing tables.

Natural light is invited through floor to ceiling windows in the living spaces, while custom-designed pendant lights take over at night.

Of course, for many potential buyers one feature and one feature alone will stand out from the rest: location, location, location.