NSW Govt Housing Boost
Written on the 2 August 2020
Moves by the NSW Government to boost the housing industry
The Property Council of Australia wasted no time in welcoming the NSW Government's package of measures to help provide more and better housing choices for people who rent, by boosting the growth of the 'build-to-rent' sector.
The incentives announced will help to attract institutional investment into new housing, giving the one-third of Australian households who rent their home more choice, certainty and better amenity.
At a Glance:
- Build-to-rent improves the resident experience, can offer longer-term tenure, provides professional lease and facility management
- NSW Government's decision to cut land tax on BTR developments by 50% will be welcomed by investors and developers
This announcement is a very welcome shot in the arm for new housing construction and will support jobs and investment as we rebuild and recover from the impact of COVID-19.
"Build-to-rent has flourished overseas and it's great to see the NSW Government taking the steps necessary to support the growth of the sector locally by providing a clearer pathway for investors and removing tax disincentives which have held back the sector's potential." said Mr Morrison.
Build-to-rent has proven to be a successful model in the US and UK but remains in its infancy in Australia.
"With this package of investment incentives and the right planning framework, NSW is poised to lead the nation in the development of this new type of housing to deliver better outcomes for people who rent as well as support new housing construction," said Mr Morrison.
This is as an important catalyst to further tax reform particularly relating to foreign managed investment trusts, as the combination of overseas and local capital will be critical to providing adequate housing options and affordability for different tenant cohorts.