According to a report from 1News on May 4th, the construction of rental housing is a type of medium to high-density residential development project specifically designed for long-term leasing, with the aim of increasing the supply of secure, affordable, and high-quality rental housing. These properties are typically owned by institutional investors.
Recently, developer Simplicity Living launched a rental housing construction project in Auckland, planning to build ten thousand new rental homes over the next decade. Managing Director Shane Brealey mentioned that the company is “not building fast enough,” as for every completed apartment, there are 5 to 6 groups of people expressing interest in moving in, indicating significant demand.
Last month, Deputy Minister of Housing and Finance Chris Bishop announced that the Cabinet has agreed to amend the Overseas Investment Act 2005 to better support housing development by making it easier for foreign investors to participate in the development of rental apartments. Bishop emphasized that this change will not affect the ban on foreign buyers of residential properties, aiming to provide convenience for foreign investors looking to invest in New Zealand.
Recently, one of the largest local developers, Kiwi Property Group, opened applications for nearly 300 apartments at Sylvia Park, expecting massive interest. The company mentioned that currently over 50% of the population aged 15 and above reside in rental properties, with expectations of this number increasing by 10% in the next 20 years.