News roundup: Australia’s build-to-rent industry still faces policy blockages, and other stories

For PropertyGuru’s real estate news roundup, Australia’s build-to-rent industry still faces policy blockages and the capital constraints that have struck broader real estate. In other news, the Thailand government to woo top French firms to invest in its Land Bridge project, and the mayor of Iloilo City in the Philippines wants to fast-track its reclamation projects.

Australia’s rental crisis: Developers demand policy push

According to realcommercial.com.au, Australia’s build-to-rent industry is on track for dramatic growth but must surmount significant hurdles as it still faces policy blockages and the capital constraints that have struck broader real estate.

The industry has been touted as a potential solution to Australia’s housing crisis, but the volume of new projects coming out of the ground has not been quick enough.

Big developers in the area have been hit by rising building costs, higher interest rates, and difficulties in locking down capital to expand.

The desire of big developers to get into the area has not waned, but striking deals has proved difficult, and fresh concerns have emerged that planned federal tax relief to stimulate investment does not go far enough.

Thai government touts Land Bridge project to top French firms

The government was due to meet in March with top-tier companies in France as part of its Land Bridge Road Show to draw firms to invest in logistics infrastructure in the Southern Economic Corridor (SEC).

In a Bangkok Post report, Panya Chupanich, director-general of the Office of Transport and Traffic Policy and Planning (OTP), said that Transport Minister Suriya Jungrungreangkit was to meet with two major French maritime investors – CMA-CGM Group and Artelia Co – to discuss the development of logistics infrastructure connecting the Gulf of Thailand with the Andaman Sea.

The environmental and health impact assessment (EHIA) for the Land Bridge megaproject is being conducted by the OTP, he said. The OTP is also studying a business model and drafting a request for proposal (RFP) to select an investor.

Iloilo City mayor: Expedite reclamation projects

Mayor Jerry Treñas wanted the proposed reclamation projects in Iloilo City fast-tracked amid the massive development here.

“With reclamation, you can have a well-planned development. More economic activities, more employment opportunities, and it will mean the city becomes more attractive,” he said in an interview on 19th February. He said the city needs reclamation because its area is only 7,834 hectares.

According to PNA, Treñas said the proponent Cebu Landmasters Inc. is interested in reclaiming a portion of the Iloilo Strait, near Fort San Pedro, with an area of 300 hectares initially for commercial-residential in the City Proper district.

The reclamation at the City Proper will start with an initial 100 hectares. It will create an island 20 meters away from the existing informal settlers.

The Property Report editors wrote this article. For more information, email: [email protected].