Tasmania is considering copying NSW’s incentives to try and entice Build to Rent (BTR) developers as the affordable housing model takes off in Australia’s main cities, which has the potential to present a competitive challenge to retirement operators.
Eligible BTR properties in NSW receive a 50% cut in land value for land tax purposes and an exemption from foreign investor duty and land tax surcharges.
Tasmania sees BTR as part of an answer to providing affordable housing on the Apple Isle.
Meanwhile, US investment management business Blackstone will open its second BTR development, the $1.2-billion 437 apartment Realm Caulfield, siting above Caulfield Village in Melbourne’s south-east, in November.
“There’s a growing demand for rented residential properties, which spans across multiple generations,” Blackstone real estate principal Tom McDonald said.
Blackstone’s first BTR, Lotus Tower at Kangaroo Point, Brisbane, opened in September last year. It is fully leased with about 300 residents living in one-, two- and three-bedroom apartments.
The BTR sector has at least 60 projects, totalling 22,254 apartments, with an estimated value of $13.6 billion. Only 6% are in operation; 11% are under construction and 83% still in the planning stages.
The SOURCE reported in October last year on Mirvac’s first BTR, LIV Indigo at Sydney Olympic Park, where a large number of its tenants are aged 55 and above.
You can learn more about build to rent competition for villages at the LEADERS SUMMIT Masterclass, 12 October in Sydney. Check the details HERE.
