Resimax Group ventures into the BTR market with Australian-first detached housing model

December 12, 2023

Resimax Group has announced plans to venture into the build-to-rent sector, retaining 500 lots across Mernda Rise, Newbridge South, and Eynesbury developments as designated rental stock by the end of 2025. The strategic move will mark an Australian first for the detached housing market.

70 per cent of the rental lots will be allocated in Mernda and Wallan, with the remaining 30 per cent allocated to Eynesbury stock. The three and four-bedroom homes will supply critical, family-sized rental stock in Melbourne’s north and west growth corridors. Additionally, Resimax Group intends to retain five to ten per cent of housing stock in future developments as build-to-rent stock.

The announcement comes as Australia’s rental crisis deepens, with research from the Australian Bureau of Statistics showing a 15% increase in the number of lifelong renters aged 25-39 years when compared to 20 years prior.

Partner builder Tick Homes, owned by Resimax Group, has been engaged to construct the homes, specifically designed for rental purposes. Resimax Group then plans to lease the properties directly to tenants through our real estate partner, Leap Real Estate.

Director and CEO of Resimax Group, Ozzie Kheir, said adopting the build-to-rent scheme within Resimax Group developments will pave the way for all developers in Australia’s detached housing market in an unparalleled time of market uncertainty.

“There is enormous potential in the build-to-rent sector as an alternative to traditional homeownership and conventional rental properties. However, the detached housing market has been slow to adopt this scheme in Australia. As a business, we’ve refined our model to leverage this opportunity.

“At Resimax Group, we have a long-term investment in our developments and communities, beyond reaching settlement. By maintaining an ongoing stake in our developments, we can maintain a unique level of control over the quality and value of stock.

“Looking into the future, we see this designated pool of rental stock as being part of the full life cycle of our development strategy. The objective of our build-to-rent program is to house tenants in our communities, then transition them into homeowners over time,” said Ozzie.

With Australia’s rental crisis worsening and an increasing number of landlords found to be exiting the market, Ozzie said the developer’s evolution into the build-to-rent space offers a much-needed solution.

“Despite difficulties in the sector, such as growing taxes and delivery costs, we are committed to pursuing our build-to-rent development strategy.

“By retaining a percentage of stock in our developments for rentals, we’re able to contribute a pool of brand new, family-sized homes to a broken rental market that is in desperate need of supply.

“However, continued investment and support from state and federal governments is critical for ensuring more developers pursue build-to-rent, and rental supply can grow in line with Australia’s growing population,” concluded Ozzie.

Explore all Resimax Group services, including Leap Real Estate and Tick Homes here.