Approval granted for 240-unit build-to-rent project
LONDON: The growing build-to-rent market is set for a huge boost, with approval granted for a 12-storey development complete with a fitness centre, swimming pool and rooftop gardens.
Approval has been granted for South Australia’s first institutional build-to-rent project, which will bring 240 new units to the western suburbs in a boon for the fledgling market.
US investor Sentinel Real Estate has secured approval for a massive mixed-use development on a 4000 sqm site in Bowden, which will include one, two and three bedroom units purpose-built for renters.
The 12-storey development will sit on the corner of Third St and Gibson St and be managed by Kinleaf property management brand upon completion.
“We are pleased to receive development approval for what will be South Australia’s first purpose-built institutional Build to Rent community,” Sentinel’s Australia managing director Keith Lucas said.
“The development is designed to offer South Australians greater housing choice and to add to the vibrancy of the walkable and inviting Bowden Urban Village. We’re proud to be bringing the innovative housing model to Adelaide.”
A fitness centre, swimming pool, rooftop gardens, business centre, resident lounge, EV charging stations and pet washing facilities will feature, while residents will also have access to on-site management and maintenance.
Construction is expected to begin in the second half of the year.
Under its Kinleaf brand, Sentinel operates two build-to-rent facilities in Perth and has other projects under way in Melbourne and Brisbane.
Build-to-rent and purpose-built student accommodation (PBSA) are emerging as important segments of Adelaide’s wider housing market, according to JLL’s head of research, who said stronger population growth in the city would fuel alternative approaches to new developments.
Build-to-rent projects, a form of long-term rental housing relatively new to Australia, have sprung up along the eastern seaboard in recent years, but the pipeline in Adelaide remains small, with JLL estimating a total pipeline of just 715 units.
The most recent ABS figures show SA’s population grew by 1.7 per cent in the 12 months to June 2023, with more than 90 per cent of the growth drive by net overseas migration.
JLL Australasian head of research Andrew Ballantyne said higher migration rates were translating to demand for alternative types of housing, including build-to-rent projects.
Social housing provider Junction is working with Perth developer Peet to offer a build-to-rent scheme in a new $70 million affordable housing project next to the St Clair Recreation Centre.
Meanwhile, the state and federal governments are partnering in a $70 million build-to-rent project next to the Air Apartments on Greenhill Rd, which will offer more than 130 social housing and affordable apartments.
