This article is from the Australian Property Journal archive
THE Suburban Land Agency is boosting housing supply in Canberra by releasing the ACT government’s first build-to-rent site.
The centrally located site, sitting within close proximity of the CBD and Australian National University, is being sold by Colliers and JLL on behalf of the Suburban Land Agency via a tender process.
“Build-to-Rent (BTR) is common overseas, but is only just starting to find traction as an investment and housing option here in Australia,” said Shane Radnell, director of residential at Colliers.
Block 3, Section 57 Turner spans 7,070sqm site and carries a minimum dwelling requirement of 270 residences.
“Rather than the traditional model we are used to, where homes in a large-scale residential development are sold individually, under BTR, the properties are all built with the specific purpose of being rented out over the medium to long-term,” added Radnell.
The residences delivered on the site cannot be unit titled for 19 years, with 15% of the dwellings also required to be offered at affordable rental rates, or lower than 75% of market rent.
“While not something we have seen in the ACT before, this site should be highly attractive to investors. There are also significant tax benefits for developers to undertake BTR and a subsidy to improve rental affordability,” said Josh Reid, director of land marketing at Colliers.
With Australia’s build-to-rent sector is set to mature into a $9.6 billion market by 2027, Canberra’s focus in the emerging sector is beginning to perk up, with 100 Northbourne Avenue is being sold to the market as a prime build-to-rent conversion opportunity.
Reid also noted that the successful bidder for the property must be able to demonstrate previous experience in delivering BTR projects.
The tender process for Block 3, Section 57 Turner is scheduled to close on 15 December 2022.
