People in Australia are finding many more new places to live these days, with construction of co-living units in this country increasing by 46 per cent and build-to-rent units increasing 38 per cent during the last year.
The Savills Development Spotlight on Build-to-Rent and Co-Living report’s analysis of the development pipeline reflects the emergence of the build to rent business, which is expected to reflect a similar building trend in the United Kingdom–where a sum of more than £10 billion ($18.4 billion) was invested in Build to Rent in the past five years.
In the land of Australia, a total of 2,326 build-to-rent apartments and 611 co-living units were constructed by the end of June 2020.
And although the global pandemic has influenced the approval of residential units and impacted home prices, the build-to-rent and co-living sectors are anticipated to expand—even as home affordability issues persist.
Savills student accommodation director Paul Savitz, the report’s writer, stated that Australia is catching up in the rent to build market—ready to capitalise on a hot new global trend in real estate.
With 8,000 units finished within just a few years of the introduction of London’s premiere build-to-rent scheme, Savills’ study of the Australian build-to-rent pipeline predicts that the sector’s development will be concurrent to UK progress, with 8,000 units constructed within a five-year period.
The UK build-to-rent sector is expected to expand in value, elevating from £9.6 billion in 2019 to a prospective maturity of more than £540 billion, supplying houses for more than 1.7 million households, Savitz asserts.
The alternate real estate asset got a recent boost by the NSW government, which cut tax payments in half for developers in the growing sector.
Savills student accommodation director Conal Newland asserted that the announcement would cause a construction boom in the state.
The rise of build-to-rent, co-living, social and student housing seems imminent, as a residential housing boom seems finally on the rise.