Melbourne Is Australia’s Build To Rent Capital
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Melbourne Is Australia’s Build To Rent Capital

The nascent sector is gaining momentum.

By Kanebridge News
Fri, Jun 18, 2021Grey Clock < 1 min

Melbourne is now Australia’s build-to-rent (BTR) “epicentre” with its pipeline is nearly double Sydney’s and quadruple Brisbane’s according to a report by Knight Frank’s Australian Residential Development Review for 2021.

In Melbourne, there were more than 6000 apartments either under construction, approved, or submitted for council’s approval.

The number of apartments in Melbourne’s pipeline comes ahead of Sydney’s 3300 and Brisbane’s 1600.

Last year 11.1% of development sites in Melbourne were purchased for high-density, build-to-rent projects while in Sydney it was only 0.7%.

The comparative BTR markets were both benefitting from a 50% land tax discount – which was designed by the governments to help spur the growth of the sector.

The tax discount was expected to extend until 2040 however a new premium land transfer tax – which is to be levied on properties worth more than $2 million – is to be introduced from July 1 is cause for concern for some investors.

US real estate firm Greystar wants the 2050 deadline for the tax discount to be extended – given the projects are long term investments.

Further, the windfall gains tax – announced in the Victorian budget – has also grabbed the notice of developers, adding a 50% tax for rezoned land.

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Strong performances in Melbourne, Adelaide and Canberra lifted the national average.

By Kanebridge News
Mon, Aug 8, 2022 2 min

Following on from the rate rise early last week, the weekend’s auction market remained resilient, despite a lack of listings reflecting the growing unease of sellers.

The national auction market reported a clearance rate of 60.9% at the weekend — lower than the 62.0% reported last weekend and well below the 81.5% recorded over the same weekend last year.

National auction volumes were lower at the weekend with only 1202 listings compared to last weekend’s 1543 and significantly lower than the same weekend last year’s 2100 auctions.

The Sydney market eased at the weekend, following the previous week’s slight uptick.

The Harbour City recorded a clearance rate of 57.8% at the weekend — lower than the 62.5% of the previous weekend and well behind the 83.0& of the same weekend last year.

Auction numbers too were down on the previous weekend – only 421 reported compared to 570 and well below the 532 auctioned over the same weekend last year.

Sydney recorded a median price of $1,470,000 for houses sold at auction at the weekend — lower than the $1,497,000 recorded last weekend and 8.4% down on the same weekend last year’s figure of $1,605,000.

Melbourne’s weekend auction market saw another solid result, with a clearance rate of 62.1% — slightly higher than the previous weekend’s 60.5% but lower than the 71.7% over the same weekend last year.

A total of 550 homes were recorded listed at the weekend in the Victorian capital — significantly lower than the 692 reported over the previous weekend and well below the 1301 listed over the same weekend last year.

Melbourne recorded a median price of $968,500 for houses sold at auction at the weekend — similar to the $970,000 reported last weekend and just 0.9% higher than the $960,000 recorded over the same weekend last year.

Elsewhere around the country, Brisbane failed to reach a clearance rate of 50%, managing to clear only 46% of the 84 listings recorded, while Adelaide and Canberra both performed strongly with rates of 72.5% and 66.2% respectively.

Data powered by Dr Andrew Wilson, Myhousingmarket.com