Oxford Properties is targeting opportunities to pump up Australia’s institutional-grade multifamily inventory and capture renters locked out of the booming housing markets in Sydney and Melbourne. The Investa management platform, in which Oxford owns a 50 per cent interest, has unveiled plans to develop 5,000 built-to-rent apartments in amenity-rich projects located near transit hubs in active urban neighbourhoods.
The first two developments — a 234-unit apartment building near a new transit station in Sydney; and a 702-unit project in one of Melbourne’s inner suburbs — are now underway, and due for completion over the next three years.
“Our residents will enjoy security of tenure through long leases of up to three years, a proactive maintenance program, pet-friendly policies, the ability to personalize apartments and sustainable design and operations,” promises Sally Franklin, Investa’s group executive, real estate services and business operations.
Australia’s expanding ranks of long-term renters are expected to provide a stable tenant base in a country where house prices are projected to jump 16 per cent by 2023. Median house values are currently CAD $893,000 (AUD $950,000) in Sydney and CAD $700,000 (AUD $745,000) in Melbourne.
“We are excited to progress Oxford’s build-to-rent investment strategy in the nascent and highly sought after institutionally owned and managed Australian residential rental sector,” says James Greener, built-to-rent fund manager with Investa. “Supported by strong macroeconomic tailwinds, continued population growth across younger renting cohorts, record high housing affordability constraints and a structural undersupply of high-quality and professionally managed residential product, the potential of the sector is high.”