A potential solution to Sydney’s housing crisis is taking shape as hundreds of homes, designed exclusively for medium to long-term renters rather than buyers, are sprouting up across the city. This innovative housing model, known as “build to rent,” is gaining traction and involves the construction of large-scale, professionally managed properties. Currently, approximately 19 build-to-rent projects are in various stages of development across Sydney, with concentrations in areas like Parramatta, Ryde, and Canterbury-Bankstown.

One notable project by developer Coronation Property is an 880-apartment block in Merrylands. While some units will be sold, a significant portion, 450 apartments, will be retained by the developer for renting. This development is set to become the largest build-to-rent apartment block in Sydney, offering convenience and immediate occupancy to renters. Aras Labutis, a spokesperson for Coronation Property, highlighted the appeal of this model, emphasizing the ease of moving into professionally managed properties designed specifically for renters’ needs.

Planning Minister Paul Scully sees this as a step toward addressing the housing issue, anticipating that increased supply will exert downward pressure on prices. He noted that the build-to-rent model, characterized by a single owner actively managing the property, provides stability to the market.

While it’s acknowledged that build-to-rent alone cannot fully resolve the housing crisis, it is seen as a significant component of the solution. This model is well-established in the United States, accounting for 12% of housing there, and has also seen success in the United Kingdom.

In the context of New South Wales (NSW), developments must allocate at least 50 dwellings to the build-to-rent model to qualify for tax concessions, encouraging further adoption of this innovative housing approach.