Retirement villages remain “all intent and purposes” full – yet the sector continues to face massive hurdles with redevelopment and access to land for new projects.
Instead, it is Build to Rent (BTR) that is attracting the lion’s share of policy attention. Backed by generous incentives, the emerging subsector now has $30 billion in projects operating or in the pipeline – and the figure is set to climb.
In Perth, where only two BTR projects currently exist, 14 new schemes have been announced.
In New South Wales, Ethos Urban has four projects in play, including a 1,181-apartment development in Marrickville, 7km from Sydney’s CBD. State-wide, there are 28 State Significant BTR developments before the Government, with 11 already approved.
The incentives fuelling growth
The Albanese Government has legislated major tax concessions for BTR, including:
- Accelerated capital works deductions at 4% over 25 years (instead of 2.5% over 40 years).
- Reduced withholding tax of 15% (down from 30%) on eligible foreign fund payments from BTR projects.
State Governments have added further sweeteners:
- NSW: a 50% land tax reduction for BTR properties extended indefinitely (previously due to expire in 2039), plus flexibility to swap housing contributions for land or infrastructure delivery.
- WA: a new $75 million Build to Rent Kickstart Fund offering low-cost finance of up to $250,000 per apartment, alongside expanded land tax concessions of 75% for large projects commencing within three years.
