Wednesday, June 19, 2024

NZ’s largest Build to Rent development opens its doors

Prime Minister Christopher Luxon and Housing Minister, Chris Bishop, have formally opened a new Build to Rent development in Mt Wellington this morning, cutting the ribbon of Resido, New Zealand’s largest Build to Rent development to date. 

Mr Bishop said Build to Rent housing was an important part of solving New Zealand’s housing crisis.

“Build to Rent developments offer an opportunity to increase the supply of secure, affordable and quality rental developments, placing downward pressure on rents,” he said.

Build to Rent developments consist of purpose-built, medium-to-large scale rental properties developments, often within walking distance to key transport links.

“The developments tend to be professionally managed, with good amenities, and offer residents a variety of lifestyle options,” said Mr Bishop.

“Overseas these types of developments are becoming increasingly common. They often offer longer leases to tenants, making them a popular choice for renters. They are often financed and operated by institutional investors and developers such as pension funds.

“There is no silver bullet to solving New Zealand’s housing crisis, so we need to take every option available to us to get more homes built. Build to Rent is one of those options.”

The Minister confirmed he will today introduce legislation to Parliament to make changes to the Overseas Investment Act 2005 to better support Build to Rent housing developments.

“The legislation introduced today will amend the Overseas Investment Act to create a new streamlined consent pathway that would allow investors to purchase land with the intention of building a new Build to Rent development or purchasing an existing one,” he said.

“This legislation will be supported by the recently-issued directive on Build to Rent investment from Associate Finance Minister David Seymour and myself which provided immediate certainty that New Zealand is open to foreign investment in Build to Rent developments.

“The Coalition government remains committed to the ban on overseas investment into existing residential housing and land in New Zealand (unless the investor is eligible for a consent). The changes in the legislation introduced today are all about adding to supply of housing and making it easier for Kiwis to get into a warm and dry home.”

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