Key2 Realty cements position as the experts in managing build-to-rent projects
Key2 Realty has fast become the expert agency working with developers in the emerging build-to-rent (BTR) affordable housing market.
A new study commissioned by the Property Council of Australia shows levelling the investment playing field for BTR homes could deliver 150,000 new apartments and help address Australia’s stark housing affordability challenges.
Property Council of Australia Chief Executive Mike Zorbas said build-to-rent housing is the missing ingredient in Australia’s housing mix.
“With a 79,300-home deficit to 2033, Australia needs better planning, more land supply, proper housing targets and a national strategy on build-to-rent and purpose-built student accommodation,” Mr Zorbas said.
Key2 Realty is working with Gemini Interchange, a property developer of a proposed 11-storey BTR project in Wickham, which will provide affordable housing and help to address Newcastle’s rental crisis.
Project spokesperson Ben Young said the Wickham development is a unique and rare offering for Newcastle to address the ongoing rental crisis, which is reflected in current rental vacancies hovering around 1.4%.
“Unlike most residential developments where apartments are quickly sold, this project will be offered for long-term rental and affordable housing purposes,” Mr Young said.
Business Manager of Key2 Realty, Larissa Llowarch, said that BTR projects such as Key2 Realty’s most recent proposed management at Wickham provide secure long-term rental opportunities, most likely benefiting key workers.
“Key2 Realty looks forward to bringing our exceptional build-to-rent property management expertise to the Gemini Interchange project.“
Build-to-rent in Australia
The build-to-rent market in Australia is relatively new and smaller compared to other countries.
Overall, the current size of the sector is estimated to be around $16.87bn, or just 0.2% of the total value of the residential housing sector.
To give more context, the United States have more than 20 million build-to-rent housing units, which represent 12% of the total housing stock. In the United Kingdom, the sector experienced a substantial growth in recent years — from 47,000 units in 2016 to 240,000 in 2022.
In Australia, there are only 11 operating build-to-rent projects, and another 72 projects are set to rise.
Early this year, the South Australia State Government has announced a $70m Build-to-Rent project in Adelaide that is expected to unlock 130 social and affordable dwellings.
Based on a conservative estimate, if the sector were to grow to just 3% of Australia’s residential stock, it could reach a value of around $290bn.
Last year, a study from JLL also suggested build-to-rent as a long-term solution for rental shortages in Australia.
According to the study, the build-to-rent model gives long-term renters security of tenure, preventing “no-cause” eviction, improves the responsiveness of maintenance requests, and helps boost the level of amenity and services offered to renters.
Links and sources:
- Newcastle Herald - "Gemini Interchange lodge plans for Wickham long-term rental and affordable housing"
- Property Council of Australia - "A new form of housing supply for Australia: build-to-rent housing"
- Investment Property Mag - "Supporting build-to-rent sector could unlock 150,000 homes"