This article is from the Australian Property Journal archive
AUSTRALIA’S largest build-to-rent project is set to go ahead after the Allan Labor government approved AsheMorgan’s 925-apartment project in Melbourne’s Docklands.
The two new residential buildings at 24 Little Docklands Drive, located near Marvel Stadium and the Esplanade and within the Docklands Primary School catchment, will aim to capture young families in the market and offer a mix of studios, one, two, and three-bedroom apartments – some over two levels – as well as over 4,000 sqm of amenity.
“Victoria is leading the nation when it comes to build-to-rent and dwelling approvals – but we know there’s more work to be done and we’ll continue to pull every lever we can so industry can build more homes,” said Victorian Minister for Planning, Sonya Kilkenny.
Melbourne is home to around three-quarters of all build-to-rent projects completed in Australia last year and 73% of build-to-rent apartments across Australia. Charter Keck Cramer data show a rapid increase in the number of build-to-rent projects in Melbourne – including 580 apartments completed in 2023 with 13,900 apartments expected to be completed in the next three years and a further 18,200 with approval or in the early stages of the planning process.
In Victoria, eligible build-to-rent developments completed and operational from 1 January 2022 until 31 December 2031 receive a 50% land tax concession for up to 30 years and a full exemption from absentee owner surcharge.
At AsheMorgan’s District Living development, residents will have access to a wellness centre with a fitness studio, plunge pool, sauna and steam room, and sky terrace with kitchen, dining and relaxation spaces. District Living will also provide retail spaces on the ground floor 2,500 sqm of private outdoor space including an outdoor dog park and dog wash, an outdoor fitness area, and green open spaces, and and a further 1,500 sqm of public outdoor open space.
Premier Jacinta Allan said the development supports the Labor government’s Housing Statement, which seeks to deliver 800,000 new homes across Victoria the state over the next decade “in areas where people want to live – close to jobs, transport and services”.
Inner Melbourne build-to-rent continues surge
Build-to-rent activity around inner Melbourne continues at a rapid clip.
Approval of the AsheMorgan’s project comes just several weeks after Gurner and Liberman family-backed joint venture partner City Harbour unveiled plans for a “futuristic wellness and anti-ageing utopia” within their $1.7 billion Elysium Fields project on Harbour Esplanade, next to Marvel Stadium, that will include a build-to-rent component within its 1,350 apartments.
Also in Docklands, developer Samma Property Group was given the green light earlier this year for a $250 million tower with build-to-rent on the Yarra River, next to the Bolte Bridge. Designed by Fender Katsalidis, the 31-storey tower will rise up from a 4,509 sqm island site at 194 Lorimer Street and comprise 402 apartments.
Last month, construction topped out at Novus and M&G Real Estate’s Novus on Sturt build-to-rent project in Southbank, on the southern edge of the CBD, following Novus being given the green light for a 215-apartment tower on a car park site in the St Kilda Road precinct. Meanwhile, US giant Greystar reached structural completion of its $500 million build-to-rent development in the Fishermans Bend precinct, which will around 1,500 people across 77 apartment.
In March, the Victorian government approved a $1.7 billion Lendlease and City of Melbourne development next to the Queen Victoria Market that will deliver 560 build-to-rent apartments, with 80 to be affordable housing.
Macquarie-funded build-to-rent platform Local Residential recently closed its inaugural managed venture with a US pension fund, and will deliver two new build-to-rent projects in South Melbourne and further out from the city in Box Hill, worth a combined $650 million.
