By Princess Ventura | 6 Dec 2017

The number of homes built explicitly to rent out is set to take off in Australia over the next five years, housing industry experts have predicted.

They’ll be nothing like we’ve seen before, either, with building managers looking after apartments, staff to look after leases and run “community” events, and onsite cafes, shops and work spaces. There will also be long-term rolling leases with the potential for tenants to transfer to other allied blocks in different areas if their jobs or circumstances change.

Build to Rent, an alternative model of development where developers design and build residential property specifically for long-term rental, is well-established overseas, particularly in the US. It is now gaining momentum in Australia and has the potential to deliver the homes we need, and fast. 

In a low interest rate environment, we’re seeing real structural change … Home ownership isn’t likely to be the norm in the future.

Urbis Director Princess Ventura says all the factors are now aligning. “Rental yields should increase going forward and we aren’t likely to see the crazy capital growth we’ve seen earlier in the residential sector.

“The rate of increase of rents over the past 10 years has been a lot higher than other asset classes like retail, industrial and office. And in a low interest rate environment, we’re seeing real structural change … Home ownership isn’t likely to be the norm in the future.”

Princess Ventura joined a panel of experts to tackle the question ‘Is Australia ready for Build to Rent‘ at the Australian Housing & Urban Research Institute’s National Housing Conference last week. 

Presented by Adam Hirst of Mirvac and facilitated by the Property Council’s Ken Morrison, the panel also included EY’s Richard Brice, St George Community Housing’s Scott Langford and Tyrone Hodge from JLL.

This article includes an excerpt from a piece which originally appeared on Domain. For the full article, and to hear from each of these experts, you can read the original in full here

Our multidisciplinary, national team – spanning planningratings and taxationvaluationsdesignproperty economicspolicy and consumer research – can help you to unpick what the build to rent opportunity may be for you.  

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