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The global build-to-rent round up - 3 June 2021

The global buildtorent round up 03 June 2021

A curation of news highlights from around the globe covering build-to-rent and specialised residential assets.

New Zealand & Australia

  • New Zealand: Build-to-rent is growing in momentum and has the potential to become the largest commercial asset class in New Zealand. Kiwi Property have plans for build-to-rent developments at Sylvia Park and LynnMall. Specialist investor and developer, Kent Gardner is building a 48-unit project in Onehunga. Current government policy is noted as an issue, where clarification around the asset class is required for further growth. Full article here.
  • Auckland: A brand new Ockham build-to-rent opportunity in Grey Lynn is being offered for sale by Colliers. The 32-unit development is currently under construction and will be complete early next year. Details here.
  • Australia: A boom in the build-to-rent market in Australia is set to change apartment living in Australia. The effects of the pandemic have accelerated growth in the asset class however tax settings and planning rules play a big part in ensuring its long-term growth. Tax treatment of build-to-rent needs to be changed to provide a level playing field with other asset classes, like PBSA (purpose-built student accommodation). Full article here.
  • Australia: New to the Australian market, Novus has purchased their first development site and is in the process of raising up to $600M. The build-to-rent investors say interest in the capital raising is strong and will fund a pipeline of developments worth around $2B on completion. Full article here.
  • Brisbane: Private developer Pellicano has begun construction on its latest build-to-rent project, in central Brisbane. The 77-unit development is set for completion in late 2022. Residents will have access to amenities including parcel management, dry cleaning, housekeeping, handyman services and regular community events. Full article here.

Europe

  • England: Analysis by Ascend properties on where the greatest build-to-rent potential investment lies, showed that Manchester, with the highest number of private rentals, offered the greatest potential. Where high numbers of people are renting, there is existing demand that can be taken up within the build-to-rent model easily. Full article here.
  • England: Suburban build-to-rent has seen record growth in the first quarter of 2021. Almost 7,000 new build-to-rent homes gained planning permission in the period, the most ever. There are currently 10% of all completed build-to-rent homes in suburban areas. Full article here.
  • Belgium: Danish co-living startup LifeX has announced expansion into the Belgian market after securing a partnership with Candor. Candor are a property development company specialising in hotels and residential developments, making them ideal partners for the co living sector. Full article here.

Thought Leadership

  • “Families offer untapped build-to-rent opportunity”: Australian research has identified families with children as a good target market for build-to-rent developers and investors. Families with kids living in a 2- or 3-bedroom apartment often lack space that can be offered through communal amenity in these developments. Families are often more willing to pay higher rents, according to the study.
  • The build-to-rent model makes the tenants, customers”: Renting for longer periods of time is something many New Zealanders are now doing and the professionalism in the build-to-rent model can provide better experiences for tenants. Build-to-rent properties are built with the intention of long-term ownership so are built better and looked after more closely. The model makes the tenant a customer at the centre of the business model and property managers can care for their experience. 

For more information or advice on build-to-rent or specialised residential projects, get in touch with Alan McMahon, National Director of Strategic Advisory at Colliers. 


Related Experts

Alan McMahon

National Director | Strategic Advisory

Auckland CBD

Alan has overall responsibility for Strategic Advisory for Colliers International in New Zealand. 

He advises a wide range of public and private sector organizations. Clients include Auckland Council,, Massey University, Kiwi Property, Ngai Tahu Property, Ngati Whatua Orakei, Ngati Whatua o Kaipara, NZ Super, and various departments of the New Zealand government including Police, MBIE, Ministry of Justice, and Kainga Ora.

 

 

 

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William Silk

Analyst | Stategic Advisory

Auckland CBD

William joined the Strategic Advisory team as an Analyst  in the Auckland CBD office in 2019, after completing studies at The University of Auckland. 

Specialising in reseasrch, reporting and analysis to support strategic commercial proprety decision making. 

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