Building more rental properties
Canterbury ranks fourth among the regions building dedicated rental properties, with 59 completed so far.
According to research conducted by Property Council New Zealand, as of 31 December 2023 there have been 1307 Build to Rent (BTR) homes delivered across New Zealand. Additionally, 850 BTR homes are under construction and a further 3395 in the development pipeline.
Auckland leads the way with 1096 units completed, with a further 742 under construction and 3350 in the development pipeline.
The March launch of a dedicated BTR tracker to check the quarterly progress of such projects, means the property council can now measure the status of this new housing model, says its chief executive Leonie Freeman.
Produced in collaboration with JLL, Colliers, Savills, CBRE and Bayleys, the tracker highlights the opportunity of BTR in providing quality, long-term rentals for Kiwis across New Zealand.
“Build to Rent has the potential to deliver significant new housing supply in our cities, and the potential to transform smaller centres where tight rental markets have made finding a home, particularly one that offers options for long-term occupancy, very difficult for renters,” says Leonie.
“In Australia and the United Kingdom, Build to Rent is the fastest growing type of residential accommodation. We know there is an appetite for similar growth and investment here, however, potential overseas investors are currently being hampered by restrictive and uncertain regulations. Getting these settings right is critical to enabling growth in the Build to Rent sector.
“From a legislative standpoint, we believe we are more than halfway to truly unlocking Build to Rent in Aotearoa. Last term saw the establishment of an asset class and the restoration of interest deductibility. The new government has recently honoured their commitment to introduce amendments to the Overseas Investment Act into Parliament as soon as possible. Alongside this, access to depreciation for Build to Rent properties and ensuring the Residential Tenancies Act is fit-for-purpose remain crucial.
“This combination of legislative levers will help fuel new housing supply, giving Kiwi renters far greater choice and security of tenure,” says Leonie.
“At the end of the day, it’s all about certainty. The more certainty we can give potential investors, the more likely they are to invest in Build to Rent in New Zealand, and the more housing options renters will have. This goes for both overseas investors and hardworking Kiwis whose KiwiSaver funds are invested in the sector – it really is a win-win-win situation,”
“Back in 2021, our modelling suggested that with the correct settings in place, Property Council’s members could deliver up to 25,000 new homes over a decade. The best time to do something was yesterday, the second-best time to act is today.”
