Residential

Milestone hit for first long-term tenant development

22 November 2017

Everyone knows we have an affordability crisis in NZ. And as more people rent for longer Generation Rent want greater security of tenure.

Increased security of tenure will change renting for the better, enabling young families in particular to enjoy stable schooling and make homes out of houses.

In an innovative, precedent-setting move, the Kerepeti housing development at Hobsonville Point will retain almost a quarter of its 208 homes for long-term rental properties. Hitting an important milestone, Kerepeti opened its display suite this month.

A venture between Ngāi Tahu Property, NZ Super Fund and New Ground Capital, the highly-liveable community includes one-to three-bedroom apartments and one to four-bedroom terraced houses, built on an affordable and secure business model that puts people first. Some of the homes will also be available under the Axis Series affordable homes scheme to boost the numbers of people realising their dream to have a good-looking home they can call their own.

In a move that will help increase renter security, 47 houses will be retained as long-term rentals managed by New Ground Living to provide a much better rental experience. We’re hopeful this model sets a precedent and is the first of many.

It ties in to the new Government’s policy platform of moving towards longer term, secure tenures for people who can’t afford to own, giving people a greater sense of community and place.

Build-to-rent investing is also an important part of institutional investment portfolios in most developed economies. But until now it hasn’t happened in the NZ residential rental market. By establishing New Ground Living, New Ground Capital are providing professional investors a way to invest in NZ’s largest capital market.

It takes courage to be the first cab off the rank with a new business model. We are very proud to be associated with this standard-setting, people-at-its-heart housing development.

The whole development embodies our mantra of density done well. We believe the scheme will bolster the idea that higher density living is good for how we live, and when done well, is one of the best solutions there is to chronic housing unaffordability and insecure tenant prospects.