Builder Kapitol and developer AsheMorgan have commenced construction works on the $600m District Living precinct in Docklands, marking the delivery phase of what will become Australia’s largest Build to Rent development.
The scheme will also be one of the most substantial additions to Melbourne’s constrained rental pipeline, where the vacancy rate sits at a historically low 1.8%
Backed by global institutional capital led by Marubeni Corporation, the two-stage precinct will comprise over 925 professionally managed apartments to a suburb critical to the city’s inner-urban housing supply and ongoing revitalisation.
The official sod-turning ceremony was attended by Acting Lord Mayor Roshena Campbell, ConsulGeneral of Japan in Melbourne Tokuro Furuya, and senior representatives from AsheMorgan, investment partners Marubeni Corporation, Haseko and Mizuho Leasing, Kapitol, and the project consultant team.
“Melbourne needs more rental homes, and it needs them delivered with accuracy and speed. District Living is the type of project that makes a measurable difference – hundreds of long-term rentals coming online in one location rather than scattered in small pockets across the city.
“Construction delays ultimately become delays for renters. By using digital coordination, 4D sequencing, and largescale prefabrication, we solve problems in the model rather than on-site, which shortens the program and gives residents homes built to a consistently high standard.
“Housing needs to be treated with the same urgency and national discipline as critical infrastructure. When a city is short hundreds of thousands of rental homes, the challenge isn’t whether we can build them, it’s whether we can deliver them with the systems, coordination and speed normally reserved for essential infrastructure.”
Andrew Deveson, Co-founder, Kapitol
Designed by Warren and Mahoney Architects, Stage One will comprise 626 studios, one-, two- and three-bedroom homes, and dual-level townhouses.
The Build to Rent community will be supported by over 2,200 sqm of communal amenities, including a wellness centre, gym, plunge pool, sauna, steam room, and sky terrace.
A further 1,000 sqm of private outdoor space and 1,700 sqm of publicly accessible open space will integrate the precinct into the District Docklands retail and entertainment area. The fully electric project targets a 7.5-star NatHERS rating.
Located at 10 Little Docklands Drive, District Living occupies a 4,240sqm site, beside Docklands Primary School and immediately adjacent to transport, employment and education networks.
New ground-floor retail tenancies will integrate District Living into the District Docklands retail and entertainment precinct, supporting Docklands’ continued evolution as a mixed-use residential neighbourhood.
“District Living has been designed as a long-term rental neighbourhood, with the scale, amenity, and public realm expected of a precinct residents will occupy for many years.
“With more than 925 apartments, it will be one of Australia’s most substantial Build to Rent communities and a significant addition to Docklands’ residential fabric.
“Our partnership with Marubeni, Haseko and Mizuho Leasing reflects the depth of institutional capital supporting this asset and our long-term intent to operate and steward this community for decades.”
Mendy Moss, Principal, AsheMorgan
The scheme arrives amid sustained pressure on Victoria’s rental market. Approximately 67% of Docklands dwellings are rented, with 98% being apartment stock, underscoring the sustained demand for inner-urban rental housing in the CBD-fringe suburb.
Victoria is forecast to face a shortfall of over 300,000 rental homes over the next decade, driven by population growth, household formation and sustained undersupply.
The delivery of over 925 long-term rental apartments in a single, integrated precinct represents one of the most substantial additions to Melbourne’s future rental pipeline, supplying new rental stock to a market where vacancy remains severely constrained.
“We see strong long-term demand for professionally managed rental housing in Australia, particularly in well-connected inner-urban locations.
“District Living aligns with our global portfolio of residential communities and represents an important first step in our Build to Rent platform in Australia.”
Noritake Miyaguchi, Marubeni Corporation
Kapitol will deliver Stage One using a digital-to-fabrication model proven on its major data centre, infrastructure and defence projects.
The approach integrates full-trade BIM coordination, 4D construction sequencing, and the prefabrication of major structural and service elements off-site before installation, reducing rework, improving quality control, and accelerating delivery.
Stage One of District Living is currently anticipated for completion in 2027.
