The coalition government will introduce legislation to make it easier for overseas investors to invest in build-to-rent developments, Housing Minister Chris Bishop says.
Cabinet has agreed to make changes to the Overseas Investment Act 2005 to better support build-to-rent housing developments, fulfilling another element of the Coalition government’s 100-day plan.
11 June Prime Minister Christopher Luxon and Housing Minister Chris Bishop formally opened a new Build to Rent development in Mt Wellington.
“The Prime Minister and I were honoured to cut the ribbon of Resido, New Zealand’s largest Build to Rent development to date.
“Build to Rent housing, like the new Resido development, is an important part of solving New Zealand’s housing crisis. Build to Rent developments offer an opportunity to increase the supply of secure, affordable and quality rental developments, placing downward pressure on rents.
“Build to Rent developments consist of purpose-built, medium-to-large scale rental properties developments, often within walking distance to key transport links. The developments tend to be professionally managed, with good amenities, and offer residents a variety of lifestyle options.
“Overseas these types of developments are becoming increasingly common. They often offer longer leases to tenants, making them a popular choice for renters. They are often financed and operated by institutional investors and developers such as pension funds.
“There is no silver bullet to solving New Zealand’s housing crisis, so we need to take every option available to us to get more homes built. Build to Rent is one of those options.
“Today I will introduce legislation to Parliament that will make changes to the Overseas Investment Act 2005 to better support Build to Rent housing developments.
“The legislation introduced today will amend the Overseas Investment Act to create a new streamlined consent pathway that would allow investors to purchase land with the intention of building a new Build to Rent development or purchasing an existing one.
“This legislation will be supported by the recently-issued directive on Build to Rent investment from Associate Finance Minister David Seymour and myself which provided immediate certainty that New Zealand is open to foreign investment in Build to Rent developments.
“The Coalition government remains committed to the ban on overseas investment into existing residential housing and land in New Zealand (unless the investor is eligible for a consent). The changes in the legislation introduced today are all about adding to the supply of housing and making it easier for Kiwis to get into a warm and dry home.”
