The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FULL PROGRAM RELEASED FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FULL PROGRAM RELEASED FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
VIEW FULL AGENDADETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
19
print
Print
OtherDinah Lewis BoucherWed 11 Nov 20

Build-to-Rent Could Address Affordable Housing Demand

7bbdb7cc-0483-4fea-8541-897918552a13

Build-to-Rent could play a key role in Australia's economic recovery and address the nation’s undersupply of housing, a report into the build-to-rent sector has found.

By increasing its delivery to an initial scale of 10,000 apartments, the "Build-to-Rent: Stimulating Recovery, Ensuring Resilience" report by Urbis and law firm Allens estimates this could support an average of 3,500 jobs per year relating to the construction phase alone.

Report authors, Urbis Director Mark Dawson and Allens partner Tim Chislett, estimate that further increasing the number of build-to-rent apartments to 50,000—a third of the inner-city apartment pipeline on Australia’s eastern seaboard—could support 19,000 jobs per year in the construction phase.

Dawson said the emerging asset class is the “quickest solution to increase housing choice and capacity at scale”.

“Despite current reduced migration rates, Australia still has a considerable housing demand gap that needs to be plugged.

“Build-to-rent provides an opportunity to increase supply, improve housing options and ensure Australia remains a liveable and resilient country,” Dawson said.

Despite its success in international markets, the reality of build-to-rent operating in Australia has long been seen as murky, with the availability of land, financial viability due to taxation issues impacting the sector’s progress.

Residential construction contributes 750,000 jobs and 7.5 per cent of total growth in the nation’s economy. While 414,000 rental dwellings would be needed by 2030, the report notes.

Unlike commercial, industrial or traditional build-to-sell developments, Chislett said build-to-rent developments don't require pre-sales or pre-leasing for project viability, reducing construction time frames.

“If policy settings allow, build-to-rent development will get cranes in the sky more quickly than any other asset class, promoting economic recovery from Covid-19 while addressing Australia's ongoing housing crisis.”

In August, the New South Wales government announced a 50 per cent land tax discount on the construction of purpose-built rental apartments, to be managed under single ownership with a requirement of more than 50 units.

Around the grounds, Frasers Property Australia and Mirvac last month secured an agreement to develop the first two affordable housing projects in Brisbane under the Queensland government's Build-To-Rent program.

Construction is tipped to start next year following the finalisation of designs for the two projects at 210 Brunswick Street Fortitude Valley and Mirvac at 60 Skyring Terrace in Newstead (lead image).

The ASX-listed Mirvac also has three build-to-rent projects across Sydney and Melbourne.

More recently, the Australian arm of US property firm Sentinel Real Estate last week announced it received development approval for the final stage of its flagship build-to rent project in Subiaco, Perth.

Known as Element 27, the $124 million project will comprise a total of 264 rental apartments, leased and managed by Sentinel.

Sentinel began reviewing build-to-rent opportunities in Australia as early as 2012, establishing its local subsidiary Sentinel Fund Manager Australia, and has a build-to-rent project at 164-168 Roden Street in Melbourne.

By end of June 2020, a Savills report found that 2,326 build-to-rent apartments had been completed in Australia.

ResidentialAustraliaConstructionPolicyReal EstateConstructionSector
AUTHOR
Dinah Lewis Boucher
More articles by this author
ADVERTISEMENT
TOP STORIES
Qld Budget 2025-26 Brisbane City
Exclusive

Billions Promised, Now Deliver: Industry’s Qld Budget Verdict

Vanessa Croll
6 Min
Medium Density housing in NSW
Exclusive

NSW Budget ‘Groundbreaking’ $1bn Guarantee to Unlock Housing

Leon Della Bosca
7 Min
Exclusive

Azure’s Trent Keirnan on Playing the Long Game

Taryn Paris
5 Min
Exclusive

Private Credit Surge, Skittish Buyers Force Banks to Loosen Presale Rules

Taryn Paris
5 Min
Forme's James Place on James Street, Fortitude Valley Brisbane
Exclusive

Forme Pushes the Boundaries on James Street Precinct

Renee McKeown
4 Min
View All >
Residential

Verso Expands Ripley Town Centre Retail and Homes Plan

Taryn Paris
Qld Budget 2025-26 Brisbane City
Exclusive

Billions Promised, Now Deliver: Industry’s Qld Budget Verdict

Vanessa Croll
Part of Shepparton's suburbs as the regional centre grows and the Victorian Government approves a new suburb in its south-east.
Planning

Victoria Unlocks New Suburb for Shepparton

Marisa Wikramanayake
The new suburb will create space for nearly 3000 homes through the precinct structure plan, housing more than 7000 resid…
LATEST
Residential

Verso Expands Ripley Town Centre Retail and Homes Plan

Taryn Paris
3 Min
Qld Budget 2025-26 Brisbane City
Exclusive

Billions Promised, Now Deliver: Industry’s Qld Budget Verdict

Vanessa Croll
6 Min
Part of Shepparton's suburbs as the regional centre grows and the Victorian Government approves a new suburb in its south-east.
Planning

Victoria Unlocks New Suburb for Shepparton

Marisa Wikramanayake
2 Min
SA Modular home example
Other

SA Tests Modular Homes to Solve Regional Housing

Leon Della Bosca
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/build-to-rent-could-address-affordable-housing-demand-report