The Property Council New Zealand has welcomed the passing of the Overseas Investment (Build to Rent and Similar Rental Developments) Amendment Bill, as a critical step toward increasing the supply of long-term, quality rental housing across New Zealand.
The Bill introduces a ‘large rental development test’ to attract much-needed overseas investment, ensuring Build to Rent (BTR) projects can be financed at scale. Property Council Chief Executive, Leonie Freeman says the move is a “game-changer” for the sector, unlocking opportunities to deliver more secure, high-quality rental options for New Zealanders.
“This legislation is a strong signal that New Zealand is open for Build to Rent investment. For years, we have seen the sector struggle to gain momentum due to regulatory uncertainty and barriers to international capital. Today’s decision changes that,” says Ms Freeman.
BTR, a purpose-built rental housing model offering professionally managed, long-term rental options, has been growing steadily in New Zealand since its formal recognition in 2023. However, to scale effectively, developers need access to investment that matches the long-term nature of these assets, the Council said in a statement.
“With supportive policy settings, our research shows that developers could deliver 25,000 Build to Rent homes within the next decade. That’s a significant contribution to increasing housing supply and providing renters with greater choice and stability,” said Ms Freeman.
The Property Council also acknowledged the cross-party support for the Bill, with all but two minor parties voting in favour. Ms Freeman says a bipartisan approach is essential for creating certainty for investors and developers.
“We thank Ministers and MPs for their collaborative approach in recognising Build to Rent as a vital part of New Zealand’s housing mix. This kind of certainty is exactly what investors need to commit to large-scale rental developments,” she said.
While the passage of the Bill is a positive step, the Property Council says it believes further refinements could enhance the sector’s growth. Ms Freeman urged the government to consider introducing depreciation for BTR fit-outs, clarifying GST rules around service levels and amenities, and ensuring the Residential Tenancies Act is appropriately applied to BTR tenancies.
“We look forward to continuing our work with government to fine-tune the policy settings that will enable Build to Rent to reach its full potential,” she said.
