BUILD-TO-RENT UPDATE

The Queensland Government has announced the preferred proponents of its Build-to-Rent Pilot Project that was announced as part of the 2018 Mid Year Fiscal and Economic Review.

Frasers Property and Mirvac are the successful proponents who are required to deliver a component of government subsidised affordable housing dwellings. The combined projects will deliver almost 7 apartments with up to 240 affordable rental dwellings. Construction is due to commence in mid-2021.

The Property Council has issued a media statement in response to the announcement.

“The Property Council welcomes today’s announcement regarding the Government’s preferred proponents for its Build-to-Rent pilot project.”

“However, given the pilot project was announced in December 2018, bolder, faster action will be required to scale up private investment and create much needed construction jobs in the sector.

“NSW has halved land tax obligations and removed its foreign taxes for eligible Build-to-Rent projects for the next 20 years. As a result, major investors have shifted their focus to NSW.

“Unless our tax settings drastically change, Queensland will miss the opportunity to attract its share of this much-needed job-generating investment.

“In addition to finalising the pilot program, the Property Council is calling for Queensland to match or better NSW’s land tax reductions and remove its uncompetitive foreign land tax surcharges.”

To read more about the Property Council’s 2020 election platform, please click here.

To read more about the Government’s announcement, please click here.