South Yarra: $190m twin towers to offer 625 apartments for renters

Want the excitement of inner-city living but find it too difficult to crack the rental market? This latest project could be just what you need.

Two towers, one reaching 30 storeys, are planned for Claremont and Yarra streets in South Yarra, with more than 600 apartments and office space. Picture: Supplied.

Renters are set to get a new opportunity to enjoy the inner-city lifestyle through a record-breaking $190m rental housing project in South Yarra.

Developer Greystar will build two towers containing 625 apartments and 2400sq m of retail and office space on Yarra and Claremont streets, in which it claims is Australia’s biggest build-to-rent project.

The first tower on Yarra St will reach 30-storeys and contain 382 apartments and 2000sq m of commercial space, while the Claremont St tower will contain 234 fully furnished apartments across 21-storeys.

All apartments will be exclusively for rent and managed by the one landlord.

The towers, to be designed by architects Fender Katsalidis, will have shops on the ground level and be linked by a combined basement.

A new pedestrian laneway will also be created which leads to South Yarra railway station.

An artist impression from ground level of a planned twin tower development on Yarra and Claremont streets in South Yarra, with more than 600 apartments and office space. Picture: Supplied.

Greystar bought both sites at 14-16 Yarra St and 35-41 Claremont St in February and the project was approved by VCAT in late July following negotiations between Stonnington Council and objectors.

The developer’s Australian managing director, Chris Key, said the project was “an important step in increasing the diversity of housing choice in Australia”.

He said the project would offer “expertly managed apartments, workspaces and abundant amenity areas” and introduce “an innovative new flexible living typology to Australian renters”.

“While build-to-rent is an emerging housing product in Australia, we believe it is simply a matter of time before this residential sector gains a foothold as a primary investment allocation for institutional investors in the Australian market,” Mr Key said.

Luke Piccolo, managing director of real estate agent Woolards’ South Yarra office, said build-to-rent projects were “exciting and changing how people interact in housing”.

But Mr Piccolo said adequate neighbourhood infrastructure was needed to support residents who would move to the suburb through Greystar’s project.

“We’ve seen a proliferation of local developments near South Yarra station and in the Forest Hill precinct, but the investment in infrastructure has taken a while to catch up,” he said.

“You’ve got to be spending in infrastructure as well to accommodate for all these people who will soon be living in the area.”

The project is set to create 970 jobs during construction and 150 property management jobs when completed.

Mr Key said construction was expected to begin in early 2022 and finish in mid-2024.

Two similar high-rise office developments have also been approved in Claremont St by the council in the past 12 months, near Melbourne High School.

A 19-storey tower with only 18 car spaces at 55 Claremont St was ticked off in August, while an 18-storey tower with a rooftop garden next door at 49-51 Claremont St was given the green light in December.