Prime Minister Christopher Luxon has opened Residio, New Zealand’s largest build-to-rent development so far, though recent legislative change is expected to enable far more in the near future
Ngāti Pāoa kaimatua Hauāuru Rawiri, Housing & Infrastructure Minister Chris Bishop, Prime Minister Christopher Luxon, KP CEO Clive Mackenzie, KP Board Chair Simon Shakesheff
Located next to Auckland’s popular Sylvia Park, the 295 apartments from Kiwi Property is designed to be a community for renters only and has been created with the unique needs of these people in mind. At Resido, residents can make their houses their homes by painting a wall, hanging photos, or getting involved with a range of events held on-site.
The official opening event was attended by key project leaders, local iwi, and various dignitaries. The event featured a performance by students from Sylvia Park School and the ribbon was cut by New Zealand Prime Minister, the Rt Hon Christopher Luxon.
Resido’s first residents have already moved in, and the apartments are designed for the long term.
Kiwi Property National Assets Manager, Shelley Jenkin, says Resido is a game changer for those who don’t want to be locked down by the financial and time commitments involved in homeownership.
“This is renting that makes sense. We’re offering Kiwis more choice when it comes to housing, combining the flexibility of renting with the stability of home ownership and a true community feel.
“Resido has been many years in the making and we’re excited to officially cut the ribbon and open our doors to an exciting new community. Nestled in the centrally located and exciting neighbourhood of Mount Wellington, with all the brilliant amenities of Sylvia Park right next door, the perks of this community are numerous.
“We’re looking forward to moving in more members of our new community and creating a vibrant place for everyone to live and rent their way.”
The opening coincides with the government’s Overseas Investment (Build to Rent and Similar Rental Developments) Amendment Bill, which aims to facilitate increased foreign investment in the Build-to-Rent housing sector.
The Amendment Bill proposes the introduction of a ‘large rental development test’ designed to attract much-needed overseas investment to stimulate the Build-to-Rent housing market in New Zealand, Leonie Freeman, chief executive of Property Council New Zealand says.
“The proposed legislative changes clearly signal that New Zealand is open to overseas investment in Build to Rent properties.”
Freeman emphasised that the new legislation is expected to streamline the process for overseas investors, thereby boosting the supply of Build-to-Rent properties and providing essential housing for New Zealanders.
Research from Property Council New Zealand suggests that with supportive legislation, its developer members could construct 25,000 Build to Rent homes within the next decade.
In support of these initiatives, Property Council New Zealand has launched a dedicated website with partners Bayleys, Colliers, Savills, CBRE, and JLL, to monitor the growth of Build to Rent developments quarterly. As of May 14, 2024, the Build to Rent tracker reported 1,449 completed units, 822 units under construction, and 3,376 in the pipeline across 57 developments, primarily in Auckland. Further details are available at www.buildtorentnz.co.nz
“With these benchmarks in place, we look forward to observing the impact of today’s announcement on the availability of Build to Rent homes once these changes are enacted,” Freeman added.
Despite the legislation’s reliance on Ministerial discretion for ensuring timely availability of at least 20 units per development for lease to occupiers, Freeman expressed optimism about continued government support for the Build to Rent sector.
“The Property Council is carefully reviewing the legislation and will collaborate with our members and the government to refine the Bill where appropriate, ensuring it effectively addresses housing supply challenges,” said Freeman. “We are also exploring the potential benefits of introducing depreciation for Build to Rent fit-outs, which could significantly enhance the sustainability and suitability of housing for tenants.”
Freeman concluded by commending the government’s proactive collaboration with the industry. “It’s encouraging to see the government taking meaningful steps towards ensuring Aotearoa has more, better-quality housing, so all New Zealanders have a place to call home.”
