ApartmentsClare BurnettSun 17 May 26
Fitzroy 243-Apartment Shoptop BtR Tower Greenlit
Melbourne may have all but relinquished its build-to-rent crown, but approval for a $72.5-million tower in the inner-north shows the sector in the state remains robust.
The Department of Transport and Planning granted the permit for the 243-unit, 11-storey project earlier this month.
The news comes just weeks after a report by BDO revealed that while Victoria still has the largest sector pipeline—24,855 apartments across 65 projects—New South Wales is closing in with 17,465 apartments across 51 projects and is “leading growth in planned developments”.
Plans for the Fitzroy project at 165-167 Johnston Street, 146-152 Argyle Street and 329 Napier Street were submitted in January.
The proposals sought to replace furniture showrooms and bottleshop on the site, which includes an “isolated” Edwardian-era heritage building.
The plans were filed by Newtown Fitzroy Pty Ltd, a vehicle associated with Cobuild chief executive Rotem Rotenberg, according to ASIC documents.
But the Yarra City Council resolved not to support the plans, saying it failed to provide an appropriate transition in height to lower scale development to the north of the site.
The height of the project would also detract from the South Fitzroy Heritage Precinct, it said.
Part of the site was also subject to a 10-storey office development application, but a decision has yet to be handed down by VCAT for those plans.
Despite objections from the council and the previous permit application, the state determined to approve the permit.
The residential project will include partial demolition of the heritage building at 329 Napier Street with retention of its facade, and the creation of vehicle access from Argyle Street.
There will be 95 car parking spaces and a 251sq m ground level commercial tenancy on the corner of Johnston and Napier streets with a four-storey podium. Bike parking of 246 spaces will be provided.
The levels above the ground floor would be allocated to residential, with 115 studios, 84 one-bedroom, 28 two-bedroom and 16 three-bedroom apartments above.
Resident facilities include work-from-home areas, a gym and yoga space, lounge, bar and private dining area.
Additional rooftop facilities include 542sqm communal terrace including barbecue-dining areas and a dog run.
The development “substantially references the eclectic and historical industrial character” of Fitzroy East, according to an assessment report of the project.
Next door is Greystar Fitzroy, at 155 Johnston Street, which is real estate giant Pembroke’s first move into Melbourne’s build-to-rent market.
Across the country, build-to-rent continues to accelerate, according to the BDO report, which found that at 51,000 apartments, the pipeline grew 30 per cent on the previous 12 months and increased 33 per cent in value to $40.1 billion.
“For the first time since the emergence of build-to-rent in Australia, New South Wales has overtaken Victoria as the dominant growth market for forward pipeline delivery,” BDO real estate advisory partner Luke Mackintosh said.
“That change matters because it signals where approvals are moving faster, where capital is following, and where delivery at scale is becoming more achievable.”
