Construction Under Way on $600m Docklands BtR Precinct
Work has begun on one of Australia’s largest build-to-rent developments, the $600-million District Living Docklands development.
Developed by private equity group AsheMorgan and designed by Warren and Mahoney Architects, the project is being built by Kapitol, which began construction last month.
AsheMorgan acquired the District Docklands shopping centre, formerly Harbour Town, in 2014 and has been developing the masterplan since then.
The real estate investor submitted plans for the build-to-rent development in 2023.
The proposals were approved in 2024 and AsheMorgan brought on funding partners Marubeni Corporation, Haseko Corporation and Mizuho Leasing last year.
The deal was Marubeni’s first foray into Australia, where it is targeting $2.93 billion in assets under management by the 2030s.
The first stage of the Docklands development now under construction comprises 626 apartments as well as 2200sq m of communal amenities that include a wellness centre, gym, plunge pool, sauna, steam room, and sky terrace.
Development Victoria executive general member precincts Niall Cunningham said the project supported the state government’s key objectives. The government body is the authority responsible for Docklands.
Stage 1 construction is expected to finish in 2027.
Similar in size to the Melbourne CBD, the wider Docklands precinct is home to more than 17,000 residents and $14.6 billion has been invested in the area during the past 25 years.
Melbourne has the most mature build-to-rent market in Australia and continues to show strong growth potential, according to Charter Keck Cramer.
Apartment supply has improved in the Victorian capital during the past two years, but remains significantly below state target.
Build-to-sell has struggled in the capital during the past year, leaving build-to-rent supply to do much of the heavy lifting, delivering 3440 apartments in the first half of 2025—53 per cent of the total supply targetted for the 2025 financial year.
