Brisbane’s built-to-rent sector attracts another high profile player
Property giant Lendlease has joined the built-to-rent bandwagon that is gathering steam in Brisbane, announcing it will develop a 37-level apartment complex at its showgrounds site at Bowen Hills.
A father and son are dead after they both jumped into a hotel pool. to save a toddler. Both men tragically drowned but the toddler survived. (Supplied image)
The development will add 443 apartments to Brisbane build-to-rent pool and join nearby developments including the CFMEU’s 30-storey development on Campbell St and Mirvac’s government-backed tower of nearly 400 apartments within the company’s popular Newstead residential precinct.
The development, in partnership with Canadian real estate investment form QuadReal Property, will represent Lendlease’s first every foray into the built-to-rent market in Australia although the company has an established presence in the market in places such as New York and London.
It comes as the number of build-to-sell apartments in Brisbane has plunged in recent years despite vacancy rates tracking at less than one per cent.
While the build-to-rent style of living has been popular overseas, with it accounting for about a fifth of the market in Europe, it is a relatively recent phenomenon in Australia. However, governments in Queensland, NSW and Victoria, have been keen to offer incentives to developers to encourage it growth.
Build-to-rent differs from traditional rental agreements in that apartment tenants usually rent direct from the developer under more generous terms including longer, more flexible lease arrangement, better amenities like swimming pools and gyms, and the ability to upsize to different apartments within the complex as families grow.
Lendlease CEO Dale Connor said the company saw “enormous potential” in the build-to-rent sector, with institutional investors showing interest in quality real estate with a resilient income.
“In the Australian market we believe there’s strong demand for long-term, premium rentals in quality locations. Our partnership with QuadReal will bring the best of our shared global experience and capability to deliver one of the finest examples in Australia,” he said.
