What you missed at the 'build-to-rent boom' lunch

Interest in WA’s build-to-rent (BTR) sector was apparent, as a diverse cross-section of property professionals came together to hear the latest information on the emerging asset class.

The event was keynoted by Luke Mackintosh , Partner at 安永 , who gave the audience a preview of the latest, EY and Property Council of Australia research report into the role of the build-to-rent sector in meeting Australia’s current and future housing demand. The report identified the necessary reforms required to see the industry expand at scale. You can read more about the report here.

During his keynote, Luke defined build-to-rent as ‘long-term accommodation owned, managed, and operated by an institutional investor as a long-term asset’ and unpacked EY’s data which showed that despite WA having the first build-to-rent property, WA currently only has 5 assets operating or under development, compared to 42 properties in VIC, 14 in QLD and 11 in NSW. Luke highlighted that the BTR sector in Australia has the potential to grow significantly and stressed the continuing need to educate investors in this space, with many still holding misconceptions about this asset class.

Luke then joined our expert panelists, Angela Buckley ( Mirvac ), Kylee Schoonens ( Rothelowman ), Keith Lucas, ARA, AIA, LEED AP ( Sentinel Real Estate ) and moderator Emily Young for an engaging discussion. Some key takeaways included:

- WA is an attractive playing field for BTR investors due to population projections, high rental growth rates and access to great schools and universities.

- The opportunity now is for the government to look at further incentives on top of the current WA tax settings. Further incentives for investors will ensure WA can compete with East Coast.

- One of the most important benefits of BTR is that it treats its tenants like a customer, giving them the safety, security, and belonging that people crave from their home. With current market conditions putting a strain on traditional landlord-tenant relationships, BTR can make a real difference in people’s lives.

- A sense of community and belonging is important when thinking about the design elements of BTR. It’s essential to consider every aspect of the space and how tenants will use it. You want them to want to live there as long as possible, so there must be a strong focus on quality and experience.

- There is a fundamental attraction for people to live differently to how we are now, and BTR is a solution to that.

- In a highly constrained construction market, the risk profile of BTR projects is more attractive than residential projects. ?

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