How Melbourne renters will live like millionaires inside $1bn tower

News.com.au

5 hours ago

A record-breaking new skyscraper in the heart of Melbourne is flipping the great Australian dream on its head, offering renters rooftop bars, private cinemas, co-working suites, pet spas and even a bowling alley.
But while the 45-storey West Tower will deliver a lifestyle most buyers can only dream of, it's part of a growing shift in Melbourne's housing market, one that could see more people choosing not to own at all.
Set to welcome its first residents in early 2026, the $1bn build-to-rent development is now the largest single build-to-rent tower in the country, with 797 apartments exclusively for lease, not sale.
Located at 899 Collins St, Docklands, the Lendlease and Daiwa House project will feature a concierge, 25-metre lap pool, cinema, rooftop gardens and sweeping bay and city views, all within walking distance of the CBD.
Daiwa House Australia chief executive Koji Morishige said the project aimed to raise the bar for rental housing.
'Everyone deserves a place they can call home, with everything a home can and should offer,' Mr Morishige said.
Lendlease Development chief executive Tom Mackellar said long-term BTR developments like West Tower were not just lifestyle-driven, they were also about meeting demand.
'Long-term rentals provide much-needed housing supply and diversity,' Mr Mackellar said.
'They give people more choice at different stages of life.'
The announcement comes amid renewed debate over the future of housing in Victoria, where house prices and rental costs remain near record highs.
While some see institutional landlords as a threat to affordability, others argue they could offer much-needed consistency and quality in a system currently dominated by mum-and-dad investors.
Interim REIV president Jacob Caine said large-scale build-to-rent projects would become a bigger part of Melbourne's housing mix, especially as traditional rental stock came under pressure.
'Build-to-rent is going to play a major role in Melbourne's housing future, and the announcement of a project of this scale is a huge vote of confidence in that model,' Mr Caine said.
'We need more homes of all kinds, whether that's rentals, first-home buyer listings, family homes, or downsizer-friendly options.
'Build-to-rent is one piece of the puzzle, but it's an increasingly important one.'
Mr Caine said the growth of build-to-rent could help relieve pressure on renters by adding more listings to the market and offering longer leases with clearer standards of management.
'The more choice there is in the market, the more pressure we can take off prices and the greater the opportunity for Victorians to find housing that suits their needs,' he said.
West Tower is part of a broader pipeline of 2800 apartments being developed by Lendlease across Melbourne and Brisbane.
Its location within the Melbourne Quarter precinct means residents will also have direct access to the recently opened Quarterhouse pub and rooftop bar, and elevated green space via the city's first 'Sky Park'.
And while it won't solve the housing crisis alone, industry leaders believe it's a glimpse into how future generations will live, with luxury amenities and no mortgage.