Build-to-Rent Model in NSW welcome — now it’s Victoria’s turn
The Property Council of Australia welcomed the announcement by the NSW Government to support a ‘Build-to-Rent’ housing model and has urged the Victorian Government to also take up the opportunity to provide more housing choice.
Acting Victorian Deputy Executive Director Linda Allison welcomed the NSW announcement as a catalyst for progress on developing Build-to-Rent in Victoria.
“Build-to-Rent is an important part of the housing supply equation.
“Developing a Build-to-Rent market in Victoria would deliver thousands of new rental homes and give people who rent access to more housing choice,” said Ms Allison
While the Victoria Government is yet to announce a Build-to-Rent model, Melbourne is well positioned because of its relative land affordability and strong economic and population outlook.
In Victoria, the Property Council has brought together a panel of key property industry players who are actively investigating this new asset class.
“The NSW announcement is a helpful signal. Industry is keen to continue working with the Victorian Government to bring Build-to-Rent from concept to reality,” said Ms Allison.
“Like other international markets, this new sector will require incentives and support, from planning as well as appropriate tax settings to encourage first mover institutional investors and create the types of assets and communities of a quality we will be proud to see in Melbourne.
We do however caution the mandated inclusion of affordable housing in BTR except on Government land.
“Build-to-Rent can deliver high quality rental accommodation close to jobs and community infrastructure. It is a model that has worked successfully in both the UK and the US.
“We all know Melbourne is growing and we will need to provide more homes for people across the city. Build-to-Rent is an important part of Melbourne’s housing options," said Ms Allison.
Media contact: Linda Allison | P (03) 9650 8300 | E email@example.com
- Build-to-Rent is a new way to live that puts the customer at the heart of the experience. It is housing that is purpose-built specifically for people renting, with longer-term tenure options and leases centrally and professionally managed, typically with onsite support.
- Under a Build-to-Rent model, some Governments support by offering tax incentives, planning flexibility or long term leasing of state land (per the NSW model), to enable the emergence of this new asset class.
- Longer-term rentals, with security of tenure, provide a pathway for aspiring home owners to buy into the market. Build-to-Rent can offer tenants with the ability to stay in the one rental property, with high amenity, for longer, reducing the need to move and the associated costs.
- Aside from the benefits of Build-to-Rent on rental affordability and choice, it benefits housing affordability as-a-whole. Build-to-Rent provides extra housing supply because it taps into less cyclical demand – new rental housing can be developed even when other housing construction is down.
- The Build-to-Rent housing model can deliver greater security of tenure over extended periods, while also enabling tenants to right-size their accommodation to suit their needs.