This article is from the Australian Property Journal archive
Build-to-rent platform Local has lodged a plan for a new $270m project in the inner-Melbourne suburb of Southbank, propelling its total asset pipeline over $1.34bn.
Situated at 65 Haig Street, the BTR development spans 39-storeys with 312 units. 74% of apartments will be configured as studios and one-bedroom units.
Amenities include co-working spaces, health and wellness facilities, an indoor heated pool, sauna and steam rooms, a fully-equipped gym, rooftop lounge, private dining area, entertainment spaces, and dedicated pet facilities.
Construction is expected to begin in Q3 2025, with completion targeted for late 2027.
“Local is thrilled to add this prime Melbourne development to our growing portfolio. This project will continue Local’s goal of delivering much needed housing, that improves rental landscape for Australians and spurs the kind of institutional Investment that the recent MIT legislative changes seeks to encourage,” said Chris Axsentieff, head of investments at Local.
“The addition of this core Melbourne asset to our portfolio responds to the significant undersupply of suitable housing across Melbourne, delivering right-sized housing in greater locations to renters who want quality housing and access to retail, transport, employment, shopping, and all that Melbourne has to offer,”
The launch of the project follows recently passed build-to-rent legislation where it increased capital works deduction rate from 2.5% to 4.0%, while reducing the withholding tax rate for eligible fund payments from managed investment trusts (MIT) investments made after 1st July 2024 from 30% to 15%.
Melbourne’s rental market remains undersupplied. According to Charter Keck Cramer’s State of the Market H1 2024, only 2,100 apartments were launched for sale to the market in FY24 while only 3,400 apartments have started construction during the same period.
The statewide vacancy rate in Queensland remains tight at only 1%, according to REIQ.
Specifically targeting Melbourne’s undersupplied rental market, 74% of apartments are configured as studios and one-bedroom units tailored to singles and couples.
