Greystar breaks ground on $360m Kensington build-to-rent project

Melbourne’s build-to-rent sector continues to gather pace, with developer Greystar breaking ground on its latest project in Kensington’s Macaulay urban renewal precinct.

The $360 million development will provide 443 apartments across a seven-level precinct, marking the company’s fourth build-to-rent (BTR) community in Victoria. It adds to Greystar’s growing Haiku portfolio, which has already launched three projects in Melbourne, contributing more than 1300 new rental homes.

The Kensington site, managed by construction firm Kapitol, is Greystar’s largest Australian undertaking to date. It is also Kapitol’s biggest residential project, with the builder employing advanced digital engineering tools and prefabrication techniques to streamline delivery.

A key feature will be the installation of prefabricated bathroom pods – units built off-site to high standards and craned into place in a single day – reducing construction times and minimising defects.

Greystar Australia managing director Matt Woodland said the project was designed with renters at its core.

“Drawing on our deep local and global expertise, Greystar is curating the amenity and design to suit the needs of renters and the local community of Kensington,” he said. “As with all Haiku properties, we’re designing our Kensington development with our residents in mind, to create a unique living experience defined by connection, community and convenience, all while keeping rents competitive.”

City of Melbourne Lord Mayor Nick Reece joined Greystar and Kapitol to mark the start of works, hailing the development as an important addition to the city’s housing mix. “The City of Melbourne is growing at a rapid pace. We need more homes and a better mix of housing types in the right locations – this new Greystar project delivers just that,” he said.

“Kensington is a key urban renewal precinct for Melbourne with great access to public transport, green open spaces, a bustling high street and a cool culinary scene – not to mention the amazing new Kensington Community Aquatic and Recreation Centre opening soon.”

Greystar’s latest development arrives as Kensington cements its place as a hub for build-to-rent projects. The precinct is already home to the completed LOCAL project and Assemble’s under-construction development nearby. Together, these projects are reshaping Macaulay into one of Melbourne’s fastest-growing rental communities.

Once complete, the Kensington Haiku property will be professionally managed by an on-site team and include curated amenities aimed at fostering community connection. With Melbourne’s vacancy rates still tight, Greystar says the project will provide a welcome injection of high-quality, long-term rental housing in a location already popular with families and young professionals.

Construction is now under way, with completion expected in the coming years. •