Windfall deals made with Ralton Property Group in Built-to-Rent market despite falling house demand amongst younger generations
The romanisation of the Great Australian Dream is buried deeper with every month we continue to see the rapid decline of Australian property prices. With a bubble once again burst, is it possibly the end of the ‘detached-house with a back garden and a fancy car’ era? With acres of available land, is the demand simply not there anymore?
According to HSBC Bank, only 28% of Australians aged from 18 to 36 own the home they in, this percentage is the second-lowest rate of home ownership in the world. Despite lenient government incentives such as first-time buyers grants and tax breaks most millennials just aren’t in the market for a home to settle down in. We are living amongst the iGrowth generation; a generation striving for sustainability in every way from their wallet to their shelter.
This has challenged property developers over Australia to take a new approach to development and estate sales. However, one estate agency, Ralton Property Group, has reaped great windfall deals in accommodating for the changing times. Their original business model featuring major amalgamations for developers in great neighbourhoods such as Chatswood and Lindfields. Now they are diversifying into supporting developers in the Build-to-Rent market their biggest client being Britely Property.
Currently, projects in the Build-to-Rent market are being developed around Sydney, including projects by Britely Property, who are looking to develop a 127 apartment project with retail space for comfortable and modern living.
Britely Property senior personnel has extensive experience in the ‘managed assets’ space with over $800m of student accommodation and hotel projects. So, this is no small company to be working on behalf of for RPG.
With several major institutional and foreign investors actively targeting the market, Built-to-Rent has great potential since it hits all corners of what the younger generations seek: low-commitment space easily customisable to feel like home.
Alex Sicari, Director of Britely Property states that “It’s becoming a popular and emerging market, investors are attracted to the portfolio diversification benefits, illustrated by stability of income and evidence of counter-cyclical performance.” This is especially highlighted when looking at BTR as infrastructure, not mere development projects. They are low-risk, long-term, cost-effective projects promoting themselves from various angles especially sustainability, modern-living and hassle-less. All the angles the younger generation takes into consideration when deciding on a different path from their parents.
With the possibility of a change in the real estate market, we are anticipating many more exciting projects from Ralton Property Group and hearing more about their uncanny ability to score great opportunities with major developers over Australia. Preparing for a future more accessible for the youth, to build the new Australian Dream. An affordable and sustainable dream.