The charges follow an outpouring of grief from Melburnians overnight with hundreds gathering to pay their respects and to support Ms Maasarwe's father, who was present at a city vigil.
According to local media reports, the arrested man was identified as Codey Herrmann, an aspiring rapper.
Australian Prime Minister Scott Morrison confirmed police suspicions that she had been raped. "I had many dreams to be with her".
Ms Maasarwe spent her final hours on Tuesday socialising with new friends in Melbourne and enjoying events in the city she'd called home for five months.
On the night she was killed, she had been to a comedy gig and was less than 1km (0.7 miles) from her home.
"All I will say is, this was a horrific attack".
Maasarwe, 21, an global exchange student, was killed when walking home after a night out with friends in Melbourne earlier this week, with the police arresting the suspect on Friday. "She loved people. She had very big opinions, her mind open for everything", Mr Maasarwe said of Aiia.
Maasarwe's sister was talking to the La Trobe University business student until the "phone fell", then heard a voice, or voices, on the other end of the line.
May's govt faces no-confidence vote after huge Brexit defeat
Earlier on Wednesday, she ruled out calling a general election, saying that it would be the worst thing Britain could do now. With the ruling Conservative party divided, the opposition party holds great influence over the eventual outcome of Brexit.
"Every woman in Australia - every person in Australia - should be able to travel home in safety".
"She should have been safe here".
Victorian Premier Daniel Andrews also expressed his sadness.
The site where the body of Aiia Maasarwe was found is surrounded by mourners and flowers in Bundoora.
On Friday night hundreds of people attended a vigil for the murdered global student.
"We have very good reason to believe that these items were discarded by the offender", a Victoria Police spokesperson said yesterday, saying the clothing was "the key to solving this crime" and appealing to the community to come forward if they had any information about the owner of the garments.
"We appreciate all the people, the community here. She wasn't in a very unsafe country at all, and yet we are still receiving such a painful message", Mr Katane told the Haaretz newspaper. "The most worst it can be".
A 20-year-old man was arrested Friday in connection to the brutal death of Israeli student Aiia Maasarwe in the Melbourne on Wednesday.