The transformation of the GC2018 Games Village into The Smith Collective last year, a residential and retail hub in the heart of Southport, laid the footprint for the first large scale build-to-rent development in Australia.
Before this, the build-to-rent landscape in Australia was mostly vacant.
So it has been welcoming news to hear developer and construction giant, Mirvac, announce that they will partner with PDG to execute Melbourne’s first build-to-rent project. A $333.5 million development which will boast 490 apartments and take residence next to the iconic Queen Victoria market.
What is build-to-rent?
Build-to-rent schemes are large scale residential developments that intend to deliver secure and quality long-term rental housing in major urban areas.
These developments are designed specifically for renting rather than for sale, typically owned by institutional investors and managed with a service-led culture by their operators.
This concept is already a well-established and widely adopted form of housing development overseas, particularly in the US and UK.
A Snapshot of the recent adoption of build-to-rent schemes in Australia
On top of Mirvac’s movement to adopt the build-to-rent model, which includes them launching the first build-to-rent club in Australia, we have also seen –
- Construction, real estate and development company, Grocon, recently implement ‘Home Residential’– Australia’s first fully funded build-to-rent platform.
- Late last year, The Queensland Government launched a $70M build-to-rent pilot project in an effort to partner with the private sector to deliver long-term rental properties and affordable housing close to Brisbane’s CBD. And just last month they invited the industry to register their ideas on how to deliver a large-scale build-to-rent development within 10kms of Brisbane’s CBD.
- The New South Wales Government announced mid last year that they would be implementing one of Australia’s first build-to-rent housing models to integrate social and affordable housing with housing supply for the broader community. They have since gone on to appoint three consortia to tender for the opportunity to deliver around 500 new homes under this model.
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