Build-to-rent an affordable housing option

“It’s an opportunity to have much more affordable housing,” Ms Lloyd-Hurwitz said.

“It doesn’t exist in Australia for a whole host of reasons. One is to do with the low yield which is largely to do with tax structures.

“It doesn’t exist as an asset class but elsewhere in the world, build-to-rent is the largest real estate investment - investment is the key word - asset class.

“Investment asset class is the most highly valued income stream in real estate but in Australia we insist on thinking about it as a capital gain play and that is what stops institutional income-focussed groups from taking on build-to-rent.

“The NSW and Victoria governments are keen to get a different type of housing typology into an environment whereby people can have a secure home in a rental context.”

Ms Lloyd-Hurwitz said Australia needed a lot of discussion at all levels of government to support and kickstart the build-to-rent industry in the “same way the UK did”.

She said six years ago there was no build-to-rent in the UK and now there was £6 billion in build-to-rent being developed.

Ms Lloyd- Hurwitz, who took over the reins of Mirvac in 2012, outlined how the leading property development firm had had earnings growth of 7.2 per cent over the past four years; had been named Employer of Choice for Gender Equality three years in a row; and had taken staff engagement from a low of 37 per cent to 88 per cent.

“The difference between companies that perform and companies that don’t is not superior strategy, it’s not balance sheet strength, it’s not brand or great products, it’s not a rockstar board or political influence,” she said.

“Employee engagement is the difference that makes the difference.”

Ms Lloyd-Hurwitz gave the final 2017 address for the 20th year of the QUT Business Leaders’ Forum.

Media contact: Niki Widdowson, QUT Media, 07 3138 2999 or media@qut.edu.au.

After hours: Rose Trapnell, 0407 585 901 or media@qut.edu.au.