During a Property Council event, the Treasurer Dominic Perito highlighted the potential importance of the sector in addressing the housing affordability challenge in NSW and acknowledged the range of policy issues that would need to be addressed to make it reality at both the state and federal levels.
The ‘build-to-rent’ industry known overseas as the ‘multi-family’ or ‘private rental’ sector involves institutional groups building masses of apartments to lease on a long-term basis, sometimes indefinitely. A single corporate landlord manages all leases and amenities.
Build-to-rent programs have had success in the UK, Germany and the US. In America, build-to-rent is the largest real estate class and generates more than $215B in revenue a year.
Mirvac recently announced its intentions to deliver the first major build-to-rent apartment development to market with the backing of major superannuation funds in an attempt to tackle housing affordability issues.
