Building homes for long-term rental went out of favour decades ago, aside from stop-start Housing NZ programmes. Now it’s back in New Zealand, but in its infancy, while overseas it’s become a recognised asset class for portfolio trading.
The US – without the same public sector dominance that has occurred in the UK, Australia & New Zealand since the Second World War – has a long-established corporate-built & -owned rental housing sector, commonly called multifamilies.
Without some of the support structure which exists in the US & UK, CBRE head of research Zoltan Moricz said it might be futile to throw them up as useful precedents for a similar evolution here.
Using local & US statistics, the CBRE research on build-to-rent development shows it can stack up on vacancy, diversification, cashflow, rental growth, yield & total returns.
CBRE said yesterday the commercial property sector in New Zealand had had its strongest half-year of transactions in nearly 5 years.
JLL researchers made 2 suggestions this week for tenants of office buildings in the Auckland cbd, and landlords of secondary space.