New $355m ‘build to rent’ tower opens next to Queen Victoria Market

Property giant Mirvac says its new apartment block is focused on the tenant rather than the landlord, with a host of perks on offer to lure people in.

A new model of renting that allows tenants to stay as long as they like, avoid paying bond and paint the walls of their apartment is experiencing a surge in popularity.

Property giant Mirvac on Wednesday unveiled its $355 million first Melbourne “build to rent’’ tower – a 490 apartment building adjacent Queen Victoria Market that has been dubbed “a renters paradise”.

Tenants calling LIV Munro home have access to a pool, spa, ballet and yoga studios, sauna, penthouse deck and entertainment space, co-working facilities, outdoor cinema and use of two Tesla vehicles.

But – as a rental, interest rate and cost of living crisis grips the nation – it is one of Australia’s newest and fastest growing housing classes that is luring many residents.

Jon Quinnell lives in the new Mirvac ‘build to rent’ apartment tower. Picture: Jason Edwards

Mirvac BTR general manager Angela Buckley said there was “a lot of interest” in the housing model popular in the US and UK, which was 10-15 years ahead of Australia’s take up of the concept

“With market conditions what they are in terms of vacancy rates, conditions of lease, low overall supply levels and renters increasing as a proportion of our population, there is a lot of favourable conditions,’’ she said.

“So we expect it will grow from here.’’

The 39 storey LIV Munro building is the second build-to-rent tower to open in Melbourne, following 59-level “Home” in Southbank.

But there are plans for more with Mirvac alone working on two additional Melbourne locations and targeting 5000 apartments by 2030.

Nationally, there are now 3,800 Build to Rent apartments with a further 8400 under construction.

The future pipeline stands at 22,500 units, including those at application stage, bringing the overall sector to 34,700 apartments completed or in development and 15,400 slated for completion by end of 2024.

Tenants at LIV Munro will be able to transfer apartments to upsize and downsize throughout their tenure and access to 24-hour desk service, including parcel collection.

Apartments, starting at $500 per week for a studio, $560 for a one bedroom, $760 for two bedroom and $1300 for three bedrooms, with all whitegoods provided and around-the-clock maintenance and replacements.

Graphic designer Jon Quinnell, 31, was drawn to LIV Munro after moving to Melbourne from the UK because he could use the co-working spaces, gym and pool for no extra cost to his one bedroom apartment.

“Renters paradise is the right term – it’s more than the traditional concept of renting,’’ he said.

“It’s everything I wanted and more … it really is like rent it but treat it like you own it.

“We are all renters but we also feel like it’s our own place, it’s got everything we want and we can make our own mark on it by decorating the apartment how we want.’’

Ms Buckley said the business model focused on the tenant rather than the landlord and removed the need to need for renters to queue up for open for inspections, enter bidding wars or pre-fill applications.