October 2021 - January 2022
What is holding N back build-to-rent in New Zealand?
HOUSING
New Zealand represents one of the most opportunistic markets for Build to Rent investors in the world, but according to JLL research, it is being significantly held back by its high barriers to entry says Paul Winstanley
38 propertyandbuild.com
ew Zealand is within touching distance of benefitting from substantial investment from the global living market, which is one of the two fastest growing major investment sectors in the world. Shifting capital allocations are favouring the living sector. Supply-demand imbalances, as well as an increasing number of transactions and liquidity are supporting the long-term investment thesis. Living investments also provide investment diversification benefits through cover upturns and down turns. Alongside China, India and South Korea, New Zealand boasts tremendous upside potential due to strong demographics and economic performance. However central governments dictating housing policy, including regulations regarding who can own and operate assets, is disrupting the market entry opportunity for experienced living owners, operators, and developers. There is no doubt that BTR is an exciting sector for investors, with growth opportunities significant and quickly evolving. But, the biggest winners in New Zealand were we to attract BTR investment and development could well be prospective renters. This is a real opportunity to raise the bar for rental accommodation in New Zealand to the benefit of renters. Since returning to New Zealand permanently in 2018, I have consistently promoted the benefits that BTR could offer renters throughout New Zealand. Personally and professionally, I am passionate about BTR primarily because I gained a great deal of experience working in the sector in the UK during its
