New Zealand: A newly launched BTR tracker has revealed that New Zealand has 1,307 BTR homes already delivered, with a further 850 under construction and 3,395 in the pipeline.
Auckland leads the way with 1,050 completed BTR units, a further 742 under construction and 3,350 in the pipeline as of Q3 2023.
The recent launch of the Build to Rent (BTR) tracker signifies the Property Council New Zealand’s ability to measure the status of this new housing model. Produced in collaboration with JLL, Colliers, Savills, CBRE and Bayleys, the purpose of the tracker is to monitor the quarterly advancements of BTR projects and highlight opportunities to provide long-term rentals across New Zealand.
“While Auckland is certainly leading the way with 1,096 units completed, a further 742 under construction and 3,350 in the development pipeline, we see huge opportunity for Build to Rent to help alleviate the pressure on rental markets in places like Queenstown, Wellington and Tauranga,” said Leonie Freeman, chief executive at Property Council New Zealand.
BTR properties are medium- to high-density, multi-unit residential developments typically owned by institutional investors or developers and managed by specialist operators. They are generally located in city centres within walking distance of key transport links, but can also be located in the regions.
The main legislative hurdles to greater investment in BTR are the Overseas Investment Act and depreciation settings.
“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. 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,” said Freeman.
