Why Melbourne is Becoming the City with the Best Rental Amenities

As an early adopter of a new housing model, Melbourne is now home to a high level of rental stock offering benefits above and beyond the usual fare.

Build-to-rent is gaining traction in Australia, offering a fresh housing option despite still occupying a small portion of the market compared to other countries like the United States and the United Kingdom.

Now in Australia, developers of various sizes are entering the playing field, with more projects added to the pipeline every month.

Build-to-rent refers to residential developments, usually consisting of high-rise apartments, where all properties are owned and managed by one entity. These apartments are then rented out over long-term periods.

So far, Melbourne has emerged as a frontrunner in this new home subtype, as it was home to three-quarters of all build-to-rent projects that were completed across the country in 2023 and, as of mid-2024, held 73% of the nation’s total stock, according to Victorian government data.

Since 2020, Mirvac has been a key player in the build-to-rent sector. Through its LIV portfolio, the developer has launched projects such as LIV Munro and LIV Aston in Melbourne, LIV Indigo in Sydney and LIV Anura in Brisbane.

Located in Docklands, LIV Aston launched in late August 2024 and comprises 474 apartments, including 20 affordable housing units, office and retail spaces and a range of amenities.

As of mid-2024, Melbourne held 73% of the nation’s total build-to-rent stock. Picture: Getty

Mirvac’s fund manager – build-to-rent sector lead Angela Buckley said the model provides certainty and choice for potential residents.

“It is something that we see as being a choice for customers that brings the best of what we’ve traditionally known as owning, which is predominantly about security and the best parts of the rental market, namely: flexibility,” she said.

“So, in blending both of those factors together, there’s a new housing typology, which customers are giving us great feedback around.”

Private developers are also tapping into the build-to-rent market. Salta has done this under its build-to-rent portfolio Est with its first development – Fitzroy & Co.

Located in Melbourne’s Fitzroy North, the building launched in October 2024 and offers 94 furnished and unfurnished apartments ranging from one-, two-, and three-bedroom floorplans.

Now, almost four months since opening, two-thirds of the development has leased.

“It’s really about the flexibility for tenants to suit their lifestyles,” Salta chief operating officer Emma Woodhouse said.

“At Fitzroy & Co, we have a range of options on offer for residents, such as renting for six months, right up to three years. That flexibility and security is a huge benefit for renters.”

A community focus

With over 1600 residents across Mirvac’s Melbourne build-to-rent projects, Ms Buckley said there’s a broad range of demographics seeing the appeal.

“In Melbourne, we see an average age of our customers in the high 20s to low 30s, across the two projects [LIV Aston and LIV Munro],” she said.

“We have families that have children, and they could be young children or adult or university-aged children, we have couples that have pet children as well and a reasonably high proportion of single households as well. There are also sharers who really like the concept.”

Another big draw of the offering is the often high-level of amenities, which can foster a sense of community, especially with bespoke shared spaces that encourage social interaction. LIV Aston has a communal lounge, multiple outdoor dining and BBQ facilities, media rooms and a pet park with a washroom.

A record lounge in Salta’s Fitzroy & Co build-to-rent development. Picture: Salta

“Because it is so community driven, it is about being able to bring forward that concept that you can really settle in these projects and build a community around yourself,” Ms Buckley said.

“The building’s intent is really about creating quite a Zen experience for customers so that they’ve got that home and sanctuary feeling while also being right on the doorstep of the city.”

According to Ms Woodhouse, Fitzroy & Co has seen interest from families and couples in the 30s to 50s range. Most tenants are from Melbourne, while many are from overseas too.

“Many of our residents are working professionals in the medical and professional services professions, who have been securing quality accommodation closer to their workplaces,” she said.

She also noted the company’s “community-centric” approach ensures residents can foster their own community within the building.

“The community element of the model is a big drawcard for renters as it allows them to stay as long as they want to, put down roots and make friends,” Ms Woodhouse said.

An extension of this is the number of premium amenities available to all residents – offerings that are often only accessible in brand-new, luxury-market focused buildings where rentals can be scarce, and the price point is higher.

For example, at Fitzroy & Co, there are coworking spaces, a gym and yoga room, a resident and record lounge, BBQ areas as well as a rooftop pet park, which has its own washroom.

Many build-to-rent developments have amenities tailored to pets, such as parks and washrooms. Picture: Salta

“Often, in a typical build-to-sell building, the most expensive penthouses have the best locations in the building,” she said.

“In build-to-rent, it’s very democratic and we’ve put all the amenities in the premium spaces so that it feels like an extension of the spaces for all residents to use and be part of their home.”

There’s also an in-house operations team to manage all resident enquires onsite.

Build-to-rent properties often lease for above market value, but the long-term stability and added benefits are proving to be worth the trade-off for many renters.

And that extends to the ease of managing elements of the tenancy from the occupant’s side.

“As a build-to-rent owner, our customers and clients are our renters so it’s really important for us to maintain the building and keep our renters happy,” Ms Woodhouse said.

“People are loving the attention to detail, level of amenity, design and the personal homely feel of the building.”

What’s to come

Mirvac is set to launch a third Melbourne project in Brunswick sometime this year – LIV Albert.

With the federal government introducing tax concessions to incentivise investment and construction within the sector, Ms Buckley said it’s a positive step.

“Some of the recent legislation changes that we’ve seen and certainly the introduction of genuine affordable housing within build-to-rent as well, is a great step forward,” she said.

“I think it’s a really great example of how this new housing typology can be more flexible in its total customer segments as well.”

Under Est, Salta is set to launch two more build-to-rent projects. The next one, in Richmond, will be bigger than the first with 476 apartments. Amenities will include a pool and wellness facility to suit different lifestyles.

The company is also looking to launch a project in Docklands, joining the likes of Home, Lendlease and Mirvac.

“We want to create different lifestyle experiences with the same quality of service and offering,” Ms Woodhouse said.

“There’s a really nice collegiate approach at the moment across all the other projects, with learning a lot from each other. We’re sharing what’s working and what’s not working because we want the sector to be successful.”