It is expected to address the housing crisis
The housing crisis has resulted in a significant increase in investment appetite for build to rent (BTR) developments in New Zealand, according to commercial real estate firm JLL.
BTR involves the development of multi-unit residential buildings for long-term rentals rather than sales to individual owners.
According to JLL’s latest report, 2020 highlighted the significance of BTR in addressing the housing crisis as the future apartment pipeline in major cities is under pressure in the short and medium term.
JLL senior director Paul Winstanley said BTR could help address the housing crisis by contributing to the construction of a wider range of high-density housing.
“While BTR isn’t the only solution to any housing crisis, it has proven globally to be a key piece of the puzzle to delivering quality homes with a clear community focus in urban areas for those who are not ready, or able, to buy for the foreseeable future,” Winstanley said, as reported by Stuff.
Read more: Experts release NZ house price forecasts for 2021
JLL said BTR is set for a breakthrough this year as global investor demand for high-quality BTR developments continues to grow.
“We are working with a number of larger-scale developer/investors who are looking to bring BTR at scale to New Zealand. We firmly expect one or two of them to break ground in New Zealand in the next 12 to 18 months,” Winstanley said.
However, Winstanley said the viability of BTR is still tricky, so government support is needed.
“To that end, it is crucial there is widespread collaboration as well as commitment and a clear line of communication with [the] government to influence policy and re-frame the housing debate to include BTR as part of a solution to the housing crisis,” he continued.
