The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
25 DAYS UNTIL OUR UNMISSABLE FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
25 DAYS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
SECURE YOUR SPOTDETAILS
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
OtherPartner ContentTue 26 Nov 19

Accelerating Growth in Australia’s Build-to-Rent Market

3643f27f-39bf-4a08-8114-9e2b55b5ab00

Coinciding with shifts in international investment markets, a developing demographic profile and residential consumer sentiment have combined to enhance the prospects for the emergence of a build-to-rent sector in Australia.

Among the Australian development community it is anticipated that build-to-rent will take the form of high-density development typically exceeding 200 dwellings in inner city and well-located middle suburb capital city locations.

The nine build-to-rent projects announced across Australia since 2017 are set to offer premium rental product in prestige locations.

While some industry experts envisage diversification of product, location and market targeting as the sector expands over time, the financial feasibility remains questionable under current conditions.

Under current Australian housing market and policy settings it remains unlikely build-to-rent will take-off as rapidly as it has in the UK in recent years.

DeveloperProject name and locationSize and formStatus
Grocon‘Parklands’, Gold Coast, Qld1,252 units and townhouses (Commonwealth Games athletes village)Development complete. BtR operations from 2019
GroconSouthbank (Melbourne), Vic410 unitsApproved. Yet to commence development
GroconSt Leonards (Sydney) NSWUnknownApproved. Yet to commence development
Sentinel‘Element 27’, Subiaco (Perth), WA360 unitsUnder construction 2018
Mirvac‘Indigo’, Sydney Olympic Park, NSW257 unitsUnder construction 2018
SaltaDocklands (Melbourne), Vic 260 units (in tower with 150 hotel rooms)Proposed project.
Salta‘Victoria Gardens’, Richmond (Melbourne), Vic426 unitsApproved. Yet to commence, proposed BtR operation on hold
GurnerSouth Melbourne, Vic128 unitsProposed. Yet to be approved
MeritonVarious Sydney sites, including ‘Signia’, Mascot Sydney sites, including ‘Signia’, MascotTotal approx. 6,000 units, including 237 units in SigniaIn operation.


Although Australian build-to-rent project returns are impaired by both market conditions and policy settings, the industry tends to focus on land tax, GST and income tax as it affects overseas investors utilising managed investment trusts (MIT) vehicles.

Of these policy levers, the most significant impact on build-to-rent returns will emerge through re-balancing state and territory government land taxes to incentivise purpose-built professionally-managed rental facilities.

The Australian government's recent confirmation that international build-to-rent investors are subject to a higher tax rate on market rent residential investments than on investment in other asset classes could be a significant impediment to build-to-rent take-off given that global funds would likely be “first movers” in establishing a new institutional funding asset class.

Without a strategic national framework that integrates tax reform, revenue support, land and planning levers build-to-rent in Australia will continue to lag comparably to countries like the UK and the USA.

To explore the build-to-rent sector further, Criterion Conferences are delighted to present their 3rd Driving Growth & Investment in Build to Rent Conference in Sydney, 19 and 20 February 2020.

Hear from and connect with a range of key industry stakeholders, policymakers and market players shaping the build-to-rent sector in Australia.

Download the brochure for more information.


The Urban Developer is proud to partner with Criterion Conferences to deliver this article to you. In doing so, we can continue to publish our free daily news, information, insights and opinion to you, our valued readers.

ResidentialAustraliaSector
AUTHOR
Partner Content
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

Carparking Correlation: How Parking Fees Provide Office Sector Health Check

Taryn Paris
6 Min
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy to the Sound of Cannons: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
5 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
View All >
Exclusive

Carparking Correlation: How Parking Fees Provide Office Sector Health Check

Taryn Paris
Bunnings Clyde North
Markets

Bunnings Sold On as Charter Hall Doubles Down on Retail

Leon Della Bosca
RCQ plan to convert 126-140 Bulcock Street, Caloundra into a 13-storey complex with ground floor retail according to the plans submitted to Sunshine Coast Council.
Residential

RCQ Files Triple-Tower Scheme for Caloundra Main Strip

Renee McKeown
Developer RCQ wants to convert eight commercial sites into 155 apartments overlooking the water…
LATEST
Exclusive

Carparking Correlation: How Parking Fees Provide Office Sector Health Check

Taryn Paris
6 Min
Bunnings Clyde North
Markets

Bunnings Sold On as Charter Hall Doubles Down on Retail

Leon Della Bosca
2 Min
RCQ plan to convert 126-140 Bulcock Street, Caloundra into a 13-storey complex with ground floor retail according to the plans submitted to Sunshine Coast Council.
Residential

RCQ Files Triple-Tower Scheme for Caloundra Main Strip

Renee McKeown
3 Min
the four concept towers approved for sydney metro's parramatta precinct
Development

Rush of Approvals Sends Parramatta Skywards

Renee McKeown
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/driving-growth-and-investment-in-build-to-rent