Homecorp Property Group will break ground on the Gold Coast’s first dedicated build-to-rent (BTR) project after securing funding for the $200-million development from ANZ.
The project, set to comprise buildings ranging from nine to 16-storeys and feature a mix of one and two-bedroom units, will sit as the Gold Coast’s first dedicated build-to-rent project.
All 389 residences on the 3ha site at Varsity Lakes, next to Bond University, will be offered as permanent rentals to the market and operated under single ownership under the BTR model.
The first stage of 257 apartments over two towers is expected to take its first tenants early in 2022.
“As a bank, we’re working closely with the industry to fund innovative solutions to help boost housing stock,” ANZ executive director of property Jeff David said.
“Supporting the build-to-rent model is one way to ensure good quality housing is available.
“The location, design of the apartments and overall amenities are important attributes that have been taken into consideration throughout the planning process of this project.”
Australia’s build-to-rent development industry has grown by almost 70 per cent in the past 12 months off the back of substantial investment.
With 40 projects under way, an estimated 15,000 units worth more than $10 billion are currently in the national pipeline.
Gold Coast-based Homecorp said the development would attempt to capitalise on one of the tightest rental markets ever experienced on the coastal city.
According to the Real Estate Institute of Queensland vacancies are well below 1 per cent across the Gold Coast, with some suburbs as low as 0.2 per cent.
Across the December quarter Varsity Lakes vacancies were at 0.6 per cent and reached a 10-year historical average of 1.43 per cent.
Homecorp chief executive Ron Bakir said the time was right for the project with market conditions currently primed for a new developments and BTR quickly becoming an asset class in its own right requiring a long-term approach.
The Gold Coast-based developer has delivered more than $1.5 billion in residential projects since 2004.
Its construction arm, which was established in 2014, is majority-owned by Japanese industrial giant Toyota.