Geelong’s $250m Build-to-Rent Tower Hangs in the Balance Over Tax Relief Plea

A major $250 million build-to-rent apartment tower proposed for Geelong’s city centre is facing an uncertain future, with developers pleading for state tax concessions to get the project off the ground.

The planned 30-storey tower, which would be reserved exclusively for tenants—not owner-occupiers—was touted as a game-changer for Victoria’s second-largest city, offering hundreds of much-needed rental homes in the heart of the Geelong CBD. However, industry sources say the project is now in financial limbo, stalled by rising construction costs and a lack of targeted tax breaks from the Allan Government.

Build-to-rent developments, which are owned and operated by institutional investors, have grown in popularity across Melbourne’s inner suburbs but remain rare in regional cities. Developers argue that without a reduction in land transfer duty or other state tax incentives, the returns on a Geelong tower simply don’t stack up against similar projects in Sydney or Brisbane, where governments have offered more generous support.

The plea comes as the Victorian government faces pressure to address a severe rental crisis, particularly in regional centres where vacancy rates remain critically low. Advocates say Geelong desperately needs more long-term rental stock to accommodate growing demand from workers and families priced out of Melbourne or attracted to the Surf Coast lifestyle.

City of Greater Geelong councillors have expressed cautious support for the project, but acknowledge that state-level fiscal levers are needed to tip the balance. Treasurer Tim Pallas has so far remained non-committal, with sources suggesting any tax relief would need to be weighed against broader budget constraints.

If the tower doesn’t proceed, it would be a significant blow to Geelong’s urban renewal ambitions, leaving a prime development site vacant while the region’s rental squeeze tightens further.