Aware builds property portfolio, adds 726 homes

Aware Real Estate will build more than 700 homes to Melbourne's housing market across two major new developments in the inner and northern suburbs, adding to the city's supply of rental accommodation.

The property group launched large-scale housing developments at Queens Road, in Melbourne's inner south, and Preston in the city's north, marking an expansion to its role as one of the largest build-to-rent (BTR) developers in Australia.

With a construction value of $320 million, the two projects will provide 726 dwellings, lifting the number of homes in Aware Real Estate's Melbourne portfolio to more than 930 across four sites.

The launch of the projects come as Melbourne's rental vacancy rate sits at a record low, below 1%, with a surge in migration fueling demand.

"This is a city crying out for more housing and we're answering the call. Our projects are in areas of strong demand, supported by important infrastructure, key transport links, and sought-after amenities," Aware Real Estate chief executive Michelle McNally said.

"At all our sites we aim to foster connected communities, attracting a broad range of residents to create great places for people to live, and these developments will be no exception."

Aware Super chief executive Deanne Stewart said Greater Melbourne is on track to be Australia's largest city inside a decade - home to more than six million people.

"Housing is at the very core of the community's needs and while no one investor can single-handedly deliver the number of homes Melbourne will require over the coming decade, we're pleased we can be part of the solution with investments that fit squarely with our objective of delivering strong long-term returns for our members," Stewart said.

"An added benefit is that these projects have such a positive impact on the Victorian community we serve."

Construction is underway at the Preston and Queens Road developments, which are earmarked to provide entirely BTR housing.  They are expected to be complete in early and mid-2026 respectively.

Barings' real estate investment management team - a long-running partner of Aware Super and Aware Real Estate after Barings acquired Altis Property Partners in 2022 - has a key role at both sites as development manager.

"We're delighted to be supporting Aware Real Estate in delivering these major new residential projects. Our relationship with Aware Super goes back more than a decade, and we'll take great pride in continuing that association as we help bring quality new apartments to Melbourne," Barings head of Asia Pacific real estate Alastair Wright said.