The Property Council of New Zealand has expressed strong support for the Government’s Overseas Investment (Build to Rent and Similar Rental Developments) Amendment Bill.
The Amendment Bill proposes the introduction of a ‘large rental development test’ designed to attract much-needed overseas investment to stimulate the Build to Rent housing market in New Zealand.
“We are very pleased to see the government’s commitment to further unlocking Build to Rent housing in New Zealand.
“The proposed legislative changes clearly signal that New Zealand is open to overseas investment in Build to Rent properties.”
Leonie Freeman, Chief Executive, Property Council New Zealand
The Property Council expects the new legislation to streamline the process for overseas investors, thereby increasing the supply of Build to Rent properties and providing essential housing for New Zealanders.
Research from the Property Council New Zealand suggests that with supportive legislation, developers could deliver 25,000 Build to Rent homes within the next decade.
In support of these initiatives, the Property Council New Zealand has launched a dedicated website with partners Bayleys, Colliers, Savills, CBRE and JLL, to monitor the growth of Build to Rent developments quarterly.
As of 14 May 2024, the Build to Rent tracker reported 1,449 completed units, 822 units under construction, and 3,376 in the pipeline across 57 developments, primarily in Auckland.
“With these benchmarks in place, we look forward to observing the impact of today’s announcement on the availability of Build to Rent homes once these changes are enacted.”
Leonie Freeman, Chief Executive, Property Council New Zealand
The Property Council states that while legislation relies on ‘Ministerial discretion’ for ensuring timely availability of at least 20 units per development for lease to occupiers, there is reason to remain positive about the continued government support for the Build to Rent sector.
“The Property Council is carefully reviewing the legislation and will collaborate with our members and the government to refine the Bill where appropriate, ensuring it effectively addresses housing supply challenges.
“We are also exploring the potential benefits of introducing depreciation for Build to Rent fitouts, which could significantly enhance the sustainability and suitability of housing for tenants.
“It’s encouraging to see the government taking meaningful steps towards ensuring Aotearoa has more, better-quality housing, so all New Zealanders have a place to call home.”
Leonie Freeman, Chief Executive, Property Council New Zealand
