Country’s largest build-to-rent scheme open for business
Prime Minister Christopher Luxon and Housing Minister Chris Bishop yesterday opened New Zealand’s largest build-to-rent housing scheme, with Luxon saying quality accommodation for tenants was a key to easing this country’s housing shortage.
“You are helping us increase supply for the rental sector,” he told those gathered at Mt Wellington’s 295-unit Resido, built by Naylor Love for NZX-listed landlord Kiwi Property Group.
“The country needs more houses. We need more rentals of high quality,” said Luxon.
Bishop said he would introduce legislation to Parliament to amend the Overseas Investment Act to allow foreigners to buy land for more buildto-rent schemes.
“The legislation . . . 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,” Bishop 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 buildto-rent developments.”
Clive Mackenzie, Kiwi Property’s chief executive, said it was a milestone for the company because when he was appointed in July 2018, he arrived here from the United States where build-to-rent was expanding as an important asset class.
Kiwi board members and employees, staff from construction business Naylor Love, Property Council and others attended the opening in a marquee outside the main 12-level tower at Resido, which is on Lynton Rd off the Mt Wellington Highway beside Sylvia Park.
A Kiwi spokesman said part of the three-tower scheme had already been rented.
“We’ve leased 17 per cent,” he said, citing 34 apartments rented to Australian flexible accommodation provider Urban Rest and a further 15 units rented or under contract to lease to individuals.
Kiwi’s annual results presentation out last month showed Resido apartments started at 43sq m for a studio, available at $625/week, up to a 111sq m three-bedroom twobathroom place with a 22sq m balcony for $1235/week.
Prices have taken aback some in the industry, saying the rates were more like a hotel than affordable rental accommodation.
The prices do not include car parks but Sylvia Park has a train station, a