Build-to-rent site in Turner hits the market

The ACT government has released its first build-to-rent site in Turner for sale today in a bid to provide more affordable housing options for Canberrans.

The sale of site 3, section 57 in Turner will be facilitated by Colliers and JLL on behalf of the Suburban Land Agency via a tender process. The block is on 7070 square metres of land and will have a minimum requirement of 270 dwellings, of which 15 per cent will be offered at an affordable rate.

The Turner site was chosen due to its proximity to light rail and the city centre.

“The build-to-rent project in Turner will provide purpose-built and long-term rental housing, helping to improve housing choice and affordability in our city,” said ACT chief minister Andrew Barr.

“It also offers a great investment, with the ACT tax system supportive of build-to-rent developments where there is no unit titling of the individual dwellings through substantially reduced land tax and general rates.

“We want to see more build-to-rent projects in the ACT, and the ACT government will be pursuing private investment into these projects over the coming years.”

The build-to-rent model is designed to improve the rental market by increasing the number of affordable rental properties in the ACT, particularly with an affordable asking price for eligible tenants.

“Build-to-rent is common overseas, but is only just starting to find traction as an investment and housing option here in Australia,” Colliers residential director Shane Radnell said.

“Rather than the traditional model we are used to, where homes in a large-scale residential development are sold individually, under build-to-rent, the properties are all built with the specific purpose of being rented out over the medium to long term.”

Barr announced in the 2022 ACT budget earlier this year that the government would trial the build-to-rent initiatives to tackle the capital’s high median rents and competition among tenants.

The Domain Rent Report, released last Thursday, revealed Canberra’s median rental price for a house dropped slightly by 1.4 per cent over the quarter to $680 a week, while units remained unchanged from the three months prior at $550 a week.

Canberra remains the most expensive city in Australia in which to rent a house or unit.

While [house price rents saw] a modest decrease of $10 [over the quarter], it is a stark comparison to the rapid escalation of house rents that had preceded [it],” said Domain chief of research and economics Dr Nicola Powell.

So far, the capital currently has two build-to-rent projects at Marquee in Amaroo housing 107 apartments, and 45 apartments by Curtin shops.

Following the release of this site, the ACT government will explore the viability and suitability of additional sites for the build-to-rent model.

The tender for Turner will open today and close on December 15.