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The global build-to-rent round up - 19 May 2022

NZ_AucklandCBD_StrategicAdvisory_The global buildtorent roundup  19 May 2022

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

Australia & New Zealand

  • New Zealand: Property Council New Zealand has launched its build-to-rent missed opportunity counter this week which shows that in the month of May 2022 1,022 build-to-rent homes could have been completed or underway if there had been policy to support build-to-rent implemented early in this Governments term. Research suggests that by the end of 2023 the missed opportunity would have grown to 3,000 homes which could have housed 8,000 people. Link to the counter and additional info here.
  • New Zealand: Proposed Queenstown development Lakeview/Taumata is to include co-living units in its development, along with 500 apartments, three hotels and a new public plaza on the former campsite. The consortium of developers, including Ninety Four Feet, Centuria Capital and Britomart Hospitality Group have put in an application to fast-track resource consent with construction likely to begin in 2023. Full article here.
  • New Zealand: Dan Lowe from Grant Thornton has said build-to-rent could help address the country’s shortage of quality, affordable rental homes but law change would be required to support investment. He said foreign pension schemes were always on the look-out for longer term investments such as build-to-rent but a specific asset class would need to be carved out to support this in the same way that the student accommodation and retirement village sectors are treated. Full article here.
  • Australia: Australian co-living and build-to-rent operator UKO has seen strong demand from both developers and renters for their rental product and have plans to open a further 24 locations in the next two years. UKO already has 16 locations offering over 1,000 units in Sydney with its co-living studios sized between 22 and 30 sqm rented at up to $500 per week, all inclusive. Full article here.
  • Australia: The Western Australian Government has announced a 50% land tax discount for build-to-rent projects in the state to alleviate financial pressures on builders. The policy also aims to address the supply of rental homes which are experiencing increasing demand due to the rise of housing unaffordability. Full article here.

Europe

  • UK: UK rental guarantor service, Housing Hand has released insights into changing trends in the UK residential rental market including a deepening division between private landlords and institutional, build-to-rent type operators. Additional landlord obligations are putting pressure on private residential investors, who may exit the market which could in turn lead to a shortage of rental supply. Full article here.
  • England: London based co-living and build-to-rent brand Gravity Co have announced that their fifth property, Gravity Royal Heights, will launch in the next few months in Reading. The first stage will deliver 53 studio, one, and two-bedroom apartments with an additional 37 units in a second stage. Residents will benefit from all-inclusive living with utilities included in the monthly rental fees, starting at £1,100. Full article here.
  • England: Vertus has reached rent stabilisation at its build-to-rent development 8 Water Street in Wood Wharf, London, ahead of schedule. The development that was launched in October 2020 offers 174 apartments and resent amenities including a private self-service bar, dining room, lounge and co-working spaces with rentals starting from £1,950 per month for a studio unit. Full article here.
  • England: Placefirst’s new build-to-rent scheme, Elevate in Manchester reached a pre-let level of 85% of its 53 units before opening this month. Leasing began in February 2022 for the development which redeveloped an existing building and added an additional floor to the top of the building. Full article here.
  • Norway: The Kode Art Museum in Bergen, Norway is transforming its galleries into a co-living space to promote the principles of collaborative living. The installation comes at a time when architects are exploring post-Covid urbanism and the rising appeal of co-living to young workers. Full article here. 
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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