A house's rental agreementBuild-to-rent homes will be more popular in Australia in the next five years, although these properties are unlike the existing kind of apartments in residential communities, according to real estate experts.

The increased amount of such rental properties stem from a desire among millennial, young families and downsizing Australians to adopt a rental lifestyle, Mir vac’s Adam Hurst said. As of December, there are 2.5 million rental homes nationwide, he added.

More Tenants

Hurst believes that more Australians will rent in the near future due to its novelty. While renting a home has become a common concept in other countries, Australia is just starting to embrace the trend. Hence, there is “a lot of excitement” over this kind of housing, Hurst said.

However, the new fleet of apartments will have new features such as building managers for residential buildings. A dedicated staff will also manage lease contracts, organise events and look after onsite businesses such as cafes and retail stores.

Tenants could also transfer to a different building in another area in case they move to a new job, due to the availability of a long-term rolling lease.

The projected rise of rental buildings will not only mean more business for property developers, but also for suppliers of construction equipment such as a cherry picker for hire.

Current Growth Trends

Homebuilders have noticed a strong increase in new orders in November, based on the Performance of Construction Index (PCI). The Australian Industry Group and Housing Industry Association’s PCI showed that housing and engineering construction activity rose to 57.5 points.

The increase reflected a continually positive outlook on the “assessment of business conditions” among companies. More people are also buying homes for the first time, according to the report.

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Conclusion

Real estate developers should consider taking advantage of a buoyant residential property market, as demand shows no signs of tapering off anytime soon.