Article: 1st August 2024. Author: Clare Burnett, The Urban Developer.
Amalgamated Property Group is ready to open the doors of what it says is the first purpose-built build-to-rent in Canberra.
The project, at 13 Irving Street in the ACT suburb of Phillip, is in partnership with Base Developments.
The development, Oaks Canopy, features 156 studio, one and two-bedroom apartments across 14 storeys, and is due to open in September.
Amalgamated said the development has a hotel-like concierge services, and a gym and business centre as well as an in-house cafe, children’s outdoor play area, and entertaining spaces including a sports lounge and garden pavilion.
Amalgamated Property development manager Daniel Potts told The Urban Developer that the developer has been involved with the site for 10 years.
“Most of the precinct has been built out as build-to-sell, and through that whole process, and more broadly across the business, we were seeing interest from renters who wanted the same quality as build-to-sell but in rental accommodation, so we earmarked this site for build-to-rent,” Potts said..
Given that Amalgamated already had a commercial management system in place and was undertaking management services generally, it seemed a natural step to invest in build-to-rent in the location.
“It’s a little bit of a mixed bag [in terms of resident demographics],” Potts said.
▲ The project is part of a wider development in the district of Woden Valley.
“There are Federal departments there like IP Australia, and a really large public hospital, so we envision some emergency workers, some working for government, and we’re also close to big universities, so university students and young professionals.”
The value of build-to-rent is in the quality of amenity and property management services offered, according to Potts.
“We have an on-site management team at our dedicated facilities and operational team on site 24/7 addressing the needs of tenants,” Potts said.
“In private rental, you might go to the property manager … whereas our team is operating it day-to-day. Being able to offer people flexibility and convenience, and organising things like cheaper internet adds up to an affordability piece as well.”
▲ Oaks Canopy will open its doors this September, with pre-sales launching from August 1.
However, the the Canberra build-to-rent project faced hurdles as the first in the city.
“It’s not easy elsewhere and Canberra is no different. Build-to-rent has been challenging to adopt, but a development like Oaks will prove that build-to-rent can be a quality offering and change the game for rental offering as best in class.
“It’s a new model, so there’s legislative, planning and taxation issues that haven’t been set up as it’s so new, and there are hesitancies around that.
“Hopefully, once we can deliver quality product they will understand what it is and we will see more acceptance of the model and we can get more build-to-rent projects up.
“But we’ll probably need local and Federal support if we want to push build-to-rent further in Canberra.”
Canberra has a number of build-to-rent projects in the works, with plans filed this year for a $91-million apartment block at Belconnen this year, while Aware Real Estate last year acquired a $157.5-million site including the build-to-rent Dickson Village.
Unsurprisingly, not every project has taken off—Evri Group reportedly abandoned plans for a development at Braddon earlier this year and put the DA-approved site up for sale.