Queensland’s build-to-rent model could permanently solve chronic rental shortfalls in not just inner Brisbane but across the state if applied right, says a developer building hundreds of homes.
KDL Property Group managing director Kent Leicester – who has four residential communities under construction in Moreton Bay and Logan Reserve – said his firm alone could add 150 houses a year for families in new build-to-rent communities if structured correctly.
He said there was no question that detached houses in outer suburban communities would need to be a part of the build-to-rent solution if chronic rental supply shortages were to be truly addressed.
“I strongly believe that if we get this model right, over the next five to 10 years, we should be moving towards multiple well established build-to-rent communities built around outer suburbs and managed really well like they are overseas.”
He said such communities would go a long way towards easing chronic rental shortfalls.
“Right now we’re trying to find the immediate solutions, working with developers who have land ready and builders who can build homes now, so we can have this affordable housing available now for the people that need it. But we also need to make sure we are planning for the future so that we can solve this problem permanently, over time with well established build-to-rent communities.”
He said developers would need a lot more information on how the program would be applied.
“We’re looking at a different product with these single family rental communities in outer suburbs that are more greenfield sites,” he said. “We can build those same communities but what qualifies as a build-to-rent project we need clarification on.”
Three developments are currently in the Palaszczuk Government’s Build-to-Rent Pilot Program – all inner city Brisbane in Newstead, Fortitude Valley and the CBD which are set to add 1,200 new dwellings of which 490 will have discounted rent.
“We’ve got a lot of land around at the moment that we could certainly allocate towards these build-to-rent projects,” Mr Leicester said. “We need more clarity on what qualifies for a build-to-rent product in the detached houses space. That will help us understand whether this qualifies for us. I believe it should do, and I hope it does, but we need more clarity on that.”
He said correct planning with council and government “right from the beginning” would ensure that variation of housing product is delivered in build-to-rent areas.
“Detached housing is not always a four bedroom home,” he said. “It could be a three bedroom home, a two-bedroom unit, a granny flat and a duplex style. There are lots of different style of products from one bedroom up to four or five bedroom homes, which can be in these areas.”
Article source: Queensland Property Investor
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