Build to Rent

What does Build-to-Rent look like for the ACT?

The ACT Government is committed to Build-to-Rent to grow the number of housing options in the Territory.

Build-to-Rent is a multi-unit development where the residential dwellings are retained by one owner/entity and rented out long-term (preferably at least 15 to 20 years) rather than being sold.

Designed with functional common spaces and homes plus extra services for residents, to encourage homes to be rented quickly and occupied for longer, to support long-term income generation for the project and security/certainty for tenants.

As the dwellings are not intended to be individually sold, the individual dwellings are not required to be unit titled. Having a single title for all residential properties in a Build-to-Rent development significantly reduces annual properties tax liabilities (including land tax), supporting viability and long-term rental operation of any Build-to-Rent development in the ACT. This is unique in comparison to other jurisdictions that are required to provide significant additional financial support in the absence of favourable tax settings.

The Build-to-Rent model has the potential to provide long lasting community benefits, with greater housing choice for tenants by expanding access to high-quality dwellings in a stable rental environment.

Genuine Build-to-Rent provides increased rental security, along with wider social and economic benefits as tenants are better able to establish themselves in a community.

The ACT Government is targeting its support to Build-to-Rent developments where at least 15 per cent of dwellings are rented as affordable rental tenancies.

The Government is offering two initiatives to support Build-to-Rent affordable rental:

Further information on these initiatives is included in the relevant sections below.

Why invest in long-term Build-to-Rent in the ACT?

The ACT tax system is supportive of Build-to-Rent developments where there is no unit titling of the individual dwellings through substantially reduced land tax and general rates. As the dwellings are not intended to be sold, the individual dwellings are not required to be unit-titled.

  • A single title across an example residential development with 300 dwellings and Average Unimproved Value of $25 million would reduce annual tax liability by $858,130 in 2023-24, a saving of around 63 percent. This is based on a saving of up to $2,870 per additional title (a general rates fixed charge, land tax fixed charge, Police Fire and Emergencies Service Levy and Safer Families Levy).
  • There are even greater savings of around 69 per cent where no titling across the example residential development.

In mixed-use developments, commercial and residential use must be on separate titles to ensure residential tax rates apply to the residential dwellings. This can be achieved through a range of approaches to subdivision and unit plans.

A range of other financial incentives will be considered for projects that include at least 15 per cent affordable rental.

The Government is also considering what planning changes might be necessary and appropriate to encourage appropriate Build-to-Rent development in the ACT, to be informed by further community and market engagement.

There are additional benefits for eligible community housing projects, including a land tax exemption.

The Build-to-Rent model is just one of the many ways we are working to meet the Territory’s diverse and changing housing needs now and into the future.

For any enquiries related to Build-to-Rent projects in the ACT, please contact cmteddbuildtorent@act.gov.au.

The Government is supporting delivery of Build-to-Rent projects on nominated sites as part of the land release program.

The Government released Block 3 Section 57 in Turner in 2022-23 as a site to pilot Build-to-Rent with a mandatory minimum affordable rental component. This site is considered favourable due to its size and proximity to the light rail and the CBD.

A second site for a Build-to-Rent development with a minimum affordable rental component is scheduled for release in 2024-25 in the Gungahlin Town Centre.

Information on the land release initiatives for Build-to-Rent projects is here: suburbanland.act.gov.au/en/build-to-rent.

You can register your interest in any future land sales, including Build-to-Rent projects by subscribing to the Suburban Land Agency mailing list here: suburbanland.act.gov.au/en/subscribe.

The $60 million Affordable Housing Project Fund was established in the 2023-24 ACT Budget.

The fund aims to grow the supply of affordable rental properties in Canberra and strengthen the community housing sector.

To enable delivery of long-term affordable rentals we may provide financial help, including:

  • financial help over the life of the program
  • upfront financial help, such as grant, for eligible projects.

Who can apply

You can submit a proposal for government help if you're a:

  • community housing provider or
  • Build-to-Rent operator with a shovel-ready opportunity.

We will consider projects where:

  • at least 15 per cent is affordable rental
  • tenants meet income criteria
  • dwellings are help for at least 15 years.

Any Government financial assistance considered will be based on the affordable rental component, where tenants meet income-based eligibility criteria.

You can also use funding and financing from Housing Australia (formerly the National Housing Finance and Investment Corporation) for your proposal.

The most recent Request for Proposal process closed on 9 April 2024.

If you have a project that you would like considered, contact cmteddbuildtorent@act.gov.au for information on the next application round.

For any enquiries related to Build-to-Rent projects in the ACT, please contact cmteddbuildtorent@act.gov.au.