Developer Resimax Group has announced plans to venture into the Build to Rent sector, retaining 500 lots across its Mernda, Wallan, and Eynesbury developments as designated rental stock by the end of 2025. The company’s strategic move into the sector marks an Australian first for the detached housing market.
70% of Resimax Group’s rental lots will be allocated in Mernda and Wallan, with the remaining 30% allocated to Eynesbury. Supplying three and four-bedroom homes, the developments aim to deliver much-needed rental family housing to the market. The company also intends to retain 5% to 10% of housing stock in future developments as Build to Rent.
Owned by Resimax Group, partner builder Tick Homes will construct the Build to Rent homes. Resimax Group then plans to lease the properties directly to tenants through its real estate partner Leap Real Estate.
“Despite difficulties in the sector, such as growing taxes and delivery costs, we are committed to pursuing our Build to Rent development strategy. By retaining a percentage of stock in our developments for rentals, we’re able to contribute a pool of brand new, family-sized homes to a broken rental market that is in desperate need of supply. However, continued investment and support from state and federal governments is critical for ensuring more developers pursue Build to Rent, and rental supply can grow in line with Australia’s growing population.”
Ozzie Kheir, Director and CEO, Resimax Group
According to Resimax Group’s Director and CEO, Build to Rent schemes within the company’s developments will pave the way for all developers in Australia’s detached housing market in an unparalleled time of market uncertainty.
With Australia’s rental crisis worsening and an increasing number of landlords found to be exiting the market, he said the developer’s evolution into the Build to Rent space offers a much-needed solution.
“There is enormous potential in the Build to Rent sector as an alternative to traditional homeownership and conventional rental properties. However, the detached housing market has been slow to adopt this scheme in Australia. As a business, we’ve refined our model to leverage this opportunity.
“At Resimax Group, we have a long-term investment in our developments and communities, beyond reaching settlement. By maintaining an ongoing stake in our developments, we can maintain a unique level of control over the quality and value of stock.
“Looking into the future, we see this designated pool of rental stock as being part of the full life cycle of our development strategy. The objective of our Build to Rent program is to house tenants in our communities, then transition them into homeowners over time.
Ozzie Kheir, Director and CEO, Resimax Group
This announcement comes as Australia’s rental crisis deepens, with research from the Australian Bureau of Statistics showing a 15% increase in the number of lifelong renters aged 25-39 years, when compared to 20 years before.
