High-density build-to-rent homes are becoming a more popular option in New Zealand — and a change to complex overseas investment laws could see more investors jump onboard.
Build-to-rent is a type of medium to high-density residential development specifically built to provide long-term rental housing with a goal to increase the supply of secure, affordable and quality rental developments in the country.
The homes are usually owned by institutional investors.
Developer Simplicity Living recently launched a significant build-to-rent housing programme across Auckland, with plans to build 10,000 new rental homes in the next decade.
Managing director Shane Brealey said the company “cant build them fast enough”.
“We get five or six groups of people per apartment that we’re finishing that want these homes, so there’s clearly a huge pent up demand.
“It doesn’t matter how many we build, the queue for people wanting these residences will never shorten.”
Last month the Government announced it will introduce legislation to make it easier for overseas investors to invest in build-to-rent developments.
Housing and Associate Finance Minister Chris Bishop said Cabinet agreed to make changes to the Overseas Investment Act 2005 to better support build-to-rent housing developments.
“I want to stress it doesn’t affect the foreign buyer ban on residential property, it’s all about new supply so making it easier for foreign investors who want to build new supply in New Zealand, we want to make that easier.”
One of the biggest builders in the country — Kiwi Property Group — anticipated huge interest after recently opening nearly 300 apartments for application at Sylvia Park.
“We think it’s a fantastic offer for renters,” said Kiwi Property Group’s national assets manager Shelly Jenkin.
She said more than 50% of people over the age of 15 currently live in rental accommodation, with that number expected to grow by 10% in the next 20 years.