Victorian Government paves the way for Build to Rent
The Victorian Government has come out in support of the Build-to-Rent (BTR) model in an effort to improve access, choice and quality for tenants while also providing greater rental tenancy lengths. The Build-to-Rent model involves building properties to rent instead of selling them to individual buyers with the aim of can providing high quality and well maintained rental stock to renters.
The BTR announcement follows hot on the heels of the Government’s recent changes to the Residential Tenancies Act which seeks to ensure renting becomes "fairer for Victorians". The model has been established for quite some time overseas but is very much an emerging sector in Australia.
The development industry has identified some barriers to the delivery of BTR. In response the Government will facilitate planning assessment, establish an industry working group, financially support BTR in community housing, clarify taxation arrangements, and lobby the federal government to make it easier to realise BTR in Australia.
Mlbourne-based developer Grocon recently obtained approval for Victoria's first BTR development - a 60-storey apartment building at 260 City Rd, Southbank designed by Bates Smart. This revised scheme replaces a previous approval for a 62-storey residential development first designed by Hayball for Apex Vic, before being sold to Altus Developments who engaged Moull Murray architects to revised conceive a revised scheme known as Monarch Tower.
Grocon is pleased to announce it has secured planning approval for Australia’s first purpose designed and developed Build to Rent in Southbank Melbourne which will include 400 apartments over 60 levels. Grocon is proud to have collaborated with Bates Smart, the Department of Environment, Water, Land and Planning (DEWLP) and City of Melbourne for this exciting project.
- Grocon
With the support of the Victorian Government, Salta might finally progress plans for its development site at 695-699 LaTrobe Street on the Docklands waterfront. Having already secured InterContinental Hotel Group (IHG) to operate a five-star Indigo-branded hotel of 170 rooms, the balance of the development will comprise 260 BTR apartments.
To be known as Hotel Indigo Melbourne Docklands the curved tower has been designed by Fender Katsalidis to reflect its harbourside location, with completion forecast for 2020.
According to the Victorian Government, a host of other development applications will be assessed via a fast tracked approval process.
What they say
Encouraging BTR will increase the supply of new, large-scale housing for longer-term renting. It can grow our stock of affordable and social housing, expanding housing choices for Victorians.” “Victoria is leading the way in supporting Build-to-Rent. We’ll keep listening for new ideas through our new industry working group.
- Tim Pallas, Treasurer
New ideas often take a while to navigate the planning system. These actions will ensure that BTR can prosper and increase the stock of rental housing to meet the current record demand.
- Richard Wynne, Minister for Planning
The Victorian Government’s support for build to rent is best in class and a welcome first step in creating a sector that will deliver high quality rental accommodation and provide greater security of tenure for Victorians. We congratulate the Government on its willingness to work with industry to address these challenges.
- Cressida Wall, Executive Director, Property Council Victorian of Australia
