Image: Rent-to-Live Co
A proposal for the largest ever build-to-rent project in New South Wales has been lodged with the state government.
If constructed, the $1.5 billion Marrickville Timberyards development would see the creation of almost 1,200 rental units, with over 100 reserved for affordable homes. The 2.2-hectare site would be home to seven apartment towers, as well as public outdoor space, and retail and creative spaces.
The masterminds behind the plan, Rent to Live Co, are a spin-off by the founders of Scape, student housing providers making their first move into the broader residential market.
Through the build-to-rent model, the developer owns and leases the units on an ongoing basis, and includes a 50 per cent reduction in land tax from the state government, and exemptions from foreign tax duties.
“Young people and families have been priced out of the inner west,” said Rent to Live Co’s development manager, Jonathan Combley, to the ABC.
“This project is a game changer because it unlocks significant housing supply, whilst also providing major public benefit through the amenities.”
Professor Nicole Gurran, urban planning researcher at the University of Sydney, said that renters could find more security in this sort of scheme.
“The benefit for renters is the possibility of a long-term secure lease,” Professor Gurran said.
“So as long as they can maintain rental payments, they’re not looking at an eviction notice at the whims of their landlord.”
Affordable housing included
However, the developments could cater to those on higher incomes.
“The international research evidence shows that build-to-rent products are typically premium,” said Gurran.
“So they will include wraparound services, wraparound facilities on site, which are appealing to many residents, but add to rental costs.”
The project would include 115 dedicated affordable housing units, with the remaining units set by supply and demand.
“We look at our rents in securing occupancy, and for us to align with market ensures that we can secure a stabilised occupancy for the precinct,” Mr Combley said.
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