Southbank to get new build-to-rent project

Melbourne-based build-to-rent developer, Local, has announced a new project in Southbank as it continues to expand its portfolio across the city.

The 39-storey building, located at 65 Haig St in Southbank, will deliver 312 apartments, providing long-term rental options for tenants. Seventy-four per cent of apartments will be configured as studios and one-bedroom units, with 10 per cent allocated for affordable housing.

Construction of the $270 million development is scheduled to begin this year, with completion slated for late 2027.

The project will also include a suite of amenities for tenants to enjoy, including co-working spaces, health and wellness facilities, an indoor heated pool, sauna and steam rooms, a gym, a rooftop lounge, entertainment and dining spaces, and dedicated pet facilities.

Head of Investments at Local Chris Axsentieff told Southbank News that the area held significant potential for build-to-rent projects and that they had been exploring opportunities to expand their portfolio within the city’s south for some time.

The Haig St project marks a pivotal expansion of Local’s national portfolio, which also includes projects in South Melbourne and Kensington, pushing its total asset pipeline beyond $1.34 billion.

“It’s got immediate demand,” Mr Axsentieff said. “For us, it’s a bit of a no-brainer to say this is a great opportunity that responds to rental demand that’s probably not really being met.”

Strategically positioned on the edge of the CBD, the site is just 200 metres from trams and a 500-metre walk to South Melbourne Market, benefiting from uninterrupted views of Port Phillip Bay.

While rental prices will vary, based on similar local projects, future tenants can expect to pay upwards of $589 per week, depending on the apartment size.

Another key drawcard of the development, according to Mr Axsentieff, is that it offers renters a more stable and transparent long-term rental process compared to the traditional model, where property managers oversee large portfolios.

Through Local’s app and onsite team, the rental process is streamlined, providing residents with clear communication channels to ensure they are satisfied with their living experience and stay informed about community updates.

“Most importantly, we are building good quality products,” Mr Axsentieff said. “But things happen, and making sure there’s always someone there to quickly respond to those issues is a big part of our offering to the market.”

Additionally, following the recent announcement of Managed Investment Trust (MIT) legislative changes, Local’s Haig St project is expected to attract increased investor interest as international appetite for the sector grows.

The changes include a reduction in the withholding tax rate for eligible fund payments from 30 per cent to 15 per cent for rental income from active build-to-rent (BTR) developments, along with an increase in the capital works deduction rate from 2.5 per cent to four per cent for eligible new BTR developments. •