Build-to-rent apartment tower in Woden readies for spring opening

The ACT Government may have spruiked its build-to-rent tender in Turner as the first genuine development of this kind in Canberra, but in Phillip, local firm Amalgamated Property Group is putting the finishing touches to a 14-storey, 156-unit rental complex that it will also manage.

The Oaks Canopy is the third and final stage of the Oaks precinct developed on the former Yamba Sports Club site in Irving Street, where a pair of historic oaks have been retained and given a new lease on life.

It will be Canberra’s first completed distinct and full BTR project.

Dickson Village Apartments, managed by Essence Communities, has laid claim to being Canberra’s first BTR community, but they are part of the Dickson shops development that is home to a Coles supermarket and other retail and is now owned by Aware Super. The five floors above contain 140 apartments.

Always slated for build-to-rent, Oaks Canopy is only six weeks from completion and listings for the property have gone live, offering units from $575 a week.

Homes include a range of studios and one and two-bedroom apartments in different configurations and designs, but like other BTR concepts, they should be appraised together with the amenities on offer.

At Oaks Canopy, that includes concierge services, a gym, a business centre for working from home, a cafe, and recreational and entertainment spaces such as a children’s outdoor play area, sports lounge and garden pavilion.

Amalgamated also offers customised options such as furniture packages, optional additional car parking, and storage so tenants only pay for what they need.

On the sustainability front, there are waste strategies, communal gardens and re-use initiatives, and the building is all-electric.

Amalgamated development manager Daniel Potts said APG had built up its own management business in recent years and it made sense to use that expertise to run the BTR operation.

“We were missing out on the rental market and another demographic of people who couldn’t afford the sales or weren’t ready to buy an apartment yet,” Mr Potts said.

“Build-to-rent suits us really well in the sense we can provide a really high-quality product to a different part of the market and use our own management business.”

It’s a model the company hopes to extend from Canberra to other cities.

APG had identified a high-quality product and resident services as its unique point of difference in Canberra’s rental market, taking cues from successful models overseas.

“The key for us is we want to provide common amenity and build a community where people aren’t stuck in their apartments,” Mr Potts said.

“We want to try to bring them out of the apartment space because by doing that, hopefully, we will create a sense of belonging and ownership among all the people living in the development, and that fosters growth throughout our rental product.”

Mr Potts said the Woden location, close to the Town Centre, future light rail, Canberra Hospital and government agencies, was ideal for BTR.

He said potential tenants should look at the complete package rather than just the headline number.

“What we’re offering here is efficiency and convenience in someone’s everyday life,” Mr Potts said.

That can even include arranging utilities, cheaper internet and dry cleaning services.

And, of course, the long-term security that BTR can provide rather than being at the whim of a landlord.

“That’s a big value add compared to private rentals where you might have your property manager somewhere else and landlord that you don’t know,” Mr Potts said.

“In this instance, the landlords are the people who are working on site. They’re servicing you every day if you’ve got issues with the apartment, if you just need to know things, if you need help.”

It was also ideal for workers coming to Canberra on contracts who want worry-free accommodation.

Mr Potts said APG wanted to remove the stigma around renting and prove that rental communities could be a positive place for all different types of people at different stages in their lives.

The BTR landscape in Canberra has been evolving in response to market conditions.

The Turner BTR project from investment firm Cedar Pacific will deliver 300 units across several buildings.

The ACT Government is also partnering with the Canberra Southern Cross Cub and CHC Australia to build 140 rental units on club land next to the club’s health and wellness centre at 50 Launceston Street.

Marymead CatholicCare Canberra and Goulburn will also partner with the government and the North Woden Parish to build 54 units on church land in Strangways Street, Curtin.

These partnerships are backed by the government’s $60 million Affordable Housing Project Fund, which is helping to finance six projects that are expected to deliver up to 280 new affordable rental properties in Canberra, contributing to a commitment to provide 600 additional affordable rentals by 2025-26.

Some planned BTR projects have been converted to serviced apartments or sales.

Capital Estate Developments switched the first two stages of its Borough development in Denman Prospect to sales but remains committed to 400 rental units in the third stage.

A 406-unit proposal from Cannes Property for Lawson in Belconnen is slated for BTR, but the developer is undecided.

The government has identified other sites for BTR, the next of which will be one in the Gungahlin Town Centre.

While the ACT is offering incentives for BTR, the sector says governments at all levels are yet to decide on a settled legislative and tax framework that would encourage more developments.