Build-to-rent developers and industry policymakers are applying the blowtorch on all layers of government to get legislative reform for the burgeoning sector strong enough to attract much-needed investment.
Now including 1000 student rooms: Artist’s impression of Melbourne’s Gurrowa Place project at Queen Victoria Market, which will also include an office tower and build-to-rent housing. Modelling from EY, commissioned by the Property Council, shows implementing a 15 per cent MIT withholding rate could create around 150,000 apartments by 2033.
“Many of our investor clients have been eagerly awaiting the details of proposed changes and hope it puts BTR on a level playing field with other forms of housing such as student accommodation.”Andrew Purdon, CBRE’s regional director, living sectors capital markets, said enacting the legislation will “help spur greater offshore interest in Australia’s fledgling build-to-rent market while speeding up the delivery of much-needed new housing stock”.
“The lack of clarity on this issue since the intention to reform was announced in the Federal budget nearly 12 months ago has undoubtedly affected investment decisions in BTR as many investors have taken a ‘wait and see’ approach before committing to new developments.” “Now is the time for government to think bigger and longer term as this important tax reform is finalised. BTR is not a silver bullet to solve the underlying supply shortage, but it has an important role to play in rebalancing the market, particularly in the inner cities,” Purdon said.