The Queensland government recently announced that it is boosting the development of “build-to-rent” residential projects through a new pilot subsidy program.
The initiative is set to provide a targeted rental subsidy to a successful proponent to deliver affordable and market rental housing within a build-to-rent development in Brisbane.
Build-to-rent buildings are large-scale residential properties, which are managed by institutional investors and developers, mainly for long-term rental. Returns are gained through rental income, rather than up-front sales or capital growth.
Renters will benefit from longer contracts and improved amenities compared to what is currently available in the private rental market.
The Property Council of Australia welcomed the news, noting that the program is advantageous to both the property industry and Queensland renters.
“This is a very welcome step towards creating a new way of delivering housing options for Queenslanders that will deliver high-quality rental accommodation and provide greater security of tenure,” said Chris Mountford, executive director of Property Council Queensland.
The government has earmarked $70 million for the project. According to the property council, this will not only pave the way for economic activity and more jobs, but also help in meeting Queenslanders’ long-term housing needs.
Mountford said that by partnering with the private sector to materialise the projects, the government is already on the right track to ensure that build-to-rent has a foothold in the Queensland market.
