Greystar’s $1.56 Billion Investment in Australian Rental Housing Market Gains Momentum With Fourth Build to Rent Property

The global build-to-rent leader breaks ground on its Kensington development with construction firm Kapitol, to deliver 443 rental homes to Melbournians

MELBOURNE, AUSTRALIA – September 15, 2025 – Greystar, a global leader in rental housing, today announced the commencement of its fourth build-to-rent (BTR) community in Victoria, a new $360 million development located in Melbourne’s inner-city suburb of Kensington.

The Kensington project will see the delivery of 443 high-quality apartments across a seven-level 9,555 square metre precinct. The project highlights the rapid expansion of Greystar’s Australian BTR brand Haiku, to deliver a new standard of rental living that meets the needs of Australian renters. 

In the past year, Greystar has launched three Haiku properties across Melbourne, delivering more than 1,300 new rental homes, with 600 more homes in the Australian pipeline. Greystar's portfolio of four properties represents a combined investment of approximately $1.56 billion.

“Drawing on our deep local and global expertise, Greystar is curating the amenity and design to suit the needs of renters and the local community of Kensington,” said Matt Woodland, Managing Director at Greystar Australia. “As with all Haiku properties, we’re designing our  Kensington development with our residents in mind, to create a unique living experience defined by connection, community and convenience, all while keeping rents competitive.”

Greystar has appointed Kapitol, a leading Melbourne-based construction company, as its building partner for the Kensington development. The Kensington project marks Kapitol’s largest residential project to date. The company will apply its advanced digital engineering expertise to the construction, aiming to maximise efficiency and precision throughout the build. One key innovation is the use of prefabricated bathroom pods, manufactured off-site to exacting quality standards and installed in a single day. 

“Build-to-rent is reshaping Australia’s housing market, and projects like Greystar’s demand speed, precision and innovation at every step,” said Andrew Deveson, Co-Founder and Director of Kapitol. “At Kapitol, we believe doing it right the first time is the quickest way. This includes fully modelling the development in 3D and constant updates and coordination across trades, enabling Kapitol to identify and resolve potential issues before they occur on site.”

Kensington is quickly becoming one of Melbourne's most sought-after suburbs for renters with a low rental vacancy rate of 1.02%. Known for its family-friendly community and convenient location, the area provides a perfect blend of city life, green spaces, and local amenities. Greystar’s new development is set to make Kensington an even more desirable place to call home.

City of Melbourne Lord Mayor, Nicholas Reece, joined the two companies to mark the commencement of the new development. 

"The City of Melbourne is growing at a rapid pace. We need more homes and a better mix of housing types in the right locations - this new Greystar project delivers just that. Melbourne is the capital of BTR development in Australia and this project is going to be a great addition to this portfolio,” said Nicholas Reece, Lord Mayor of the City of Melbourne. 

"Kensington is a key urban renewal precinct for Melbourne with great access to public transport, green open spaces, a bustling high street and a cool culinary scene - not to mention the amazing new Kensington Community Aquatic and Recreation Centre opening soon. This exciting project will deliver high quality and accessible new homes in this brilliant location - it is a win-win for Greystar and the City of Melbourne,” added Reece. 

Like all Haiku properties, the new Kensington community will be professionally managed by a dedicated on-site team. It will offer residents a curated suite of amenities and wellness spaces that Greystar is fast becoming known for, from co-working suites, private dining rooms and a library to outdoor plunge pools, a pet spa and a fully equipped gym with yoga and Pilates studios.

The building will have a variety of sustainable features including rooftop solar and a 5 star Green Star rating, with all apartments and amenities to be powered by 100% offsite renewable energy. This development will introduce a new standard of high-quality rental housing options to a city with a very tight rental market, with vacancy rates across Melbourne remaining under 1.5%.

Greystar is currently leasing homes across its three Haiku properties, including Haiku Gladstone in South Melbourne, and Haiku Yarra and Haiku Claremont in South Yarra. 

About Greystar
Greystar is a leading, fully integrated global real estate platform offering expertise in property management, investment management, development, and construction services in institutional-quality rental housing. Headquartered in Charleston, South Carolina, Greystar manages and operates over $300 billion of real estate in more than 250 markets globally with offices throughout North America, Europe, South America, and the Asia-Pacific region. Greystar is the largest operator of apartments in the United States, managing over 1,000,000 units/beds globally. Across its platforms, Greystar has nearly $79 billion of assets under management, including over $35 billion of development assets and over $30 billion of regulatory assets under management. Greystar was founded by Bob Faith in 1993 to become a provider of world-class service in the rental residential real estate business.

Media contact for Greystar
Greystar@slingstone.com

About Kapitol
Founded in 2018, Kapitol Group is one of Australia's fastest-growing construction companies. Led by co-founders Dave Caputo and Andrew Deveson, Kapitol currently has a workbook of $1.7 billion and a pipeline in excess of $4 billion. Its clients span commercial, education, industrial and residential sectors, including ASX 100 and Fortune 100 companies. Kapitol's rapid growth has been substantiated by its commitment to excellence, adoption of technology, and focus on improving the construction industry for a better life.

Media contact for Kapitol
Erica Moloney, General Manager, Neue Media
erica@neuemedia.com.au