The Turner build-to-rent development will consist of three to four timber buildings up to eight storeys tall. Image: Suburban Land Agency.
The proposed build-to-rent housing project in Turner will be an innovative campus-style, multi-building development that could deliver 300 units to the Northbourne Avenue corridor, 15 per cent of them “affordable”.
Brisbane-based investment firm Cedar Pacific has exchanged contracts with the ACT Government on the 7070 sqm site (Block 3 Section 57), which was released for sale as a dedicated build-to-rent proposition. The company paid $30 million, excluding GST, for the site, an ACT Government spokesperson said.
Company director of development Alan Frost said there would probably be three or four timber buildings on the site, ranging from eight storeys on Northbourne Avenue and stepping back to five storeys on Forbes Street.
Mr Frost said sustainability and a low-carbon footprint would be a key feature with timber construction, a 5-star Green Star rating in design and operation, an all-electric operation powered by rooftop solar and external renewable energy and electric vehicle chargers installed.
Amenities would include a gym, co-working facilities, cinemas and a residents’ lounge on the roof.
“There will be between 4 and 5 sqm per apartment of internal communal space and then curated external communal space as well,” Mr Frost said.
The timber construction would also mean higher floor-to-ceiling heights and more spacious living areas.
Mr Frost said the company was working on lodging a development application by the end of the year.
He said subsidiary Cedar Holdings developed and managed an extensive portfolio of purpose-built student accommodation, co-living, and built-to-rent housing on behalf of its global investors.
Cedar Pacific Director of Development Alan Frost says much more BTR was possible if governments get the settings right. Photo: Ian Bushnell.
The Turner site will be the company’s second BTR project after its 475-unit Brisbane development, which is currently under construction.
It will be Canberra’s first genuine BTR development and is a key part of the government’s response to the housing crisis and the growing challenge of people buying their own homes.
Mr Frost said that in the 25 to 45-year age bracket, the national average of households renting was more than 50 per cent.
“The Canberra opportunities in the build-to-rent market are significant, with 30 per cent of the wider city now renting and the Inner North sitting at over 50 per cent,” he said.
“Turner is currently at 54 per cent. This sets the foundation for a highly desirable build-to-rent market.”
Mr Frost said the attraction for investors was reliable long-term returns, while tenants could depend on secure housing that was like their own and offered communal amenities.
He said other investors would be watching the progress of this development closely to assess the BTR model’s viability.
While the ACT has a range of tax settings in place to support BTR developments, Mr Frost said a lack of firm settings from the federal to local level was hindering the sector, particularly the Commonwealth’s “messy” proposed Managed Investment Trust tax changes that have been shunted to a Senate Committee.
“The EY report that was given to the government a year ago said in the next 10 years we can build 150,000 new homes,” Mr Frost said.
“If it was 50 per cent of what the build to rent is in the UK, there’d be 350,000 to 400,000 homes.
“So it’s not the answer to our housing crisis, but it could easily be part of the answer.”
Chief Minister Andrew Barr said more government land had been identified for BTR projects, with one in Gungahlin the next announcement to come.
A community housing provider will manage the Turner project’s affordable housing component of 40-plus units.
The Turner site was released in 2022 through a two-stage expression of interest process.
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