The ACT Government and Cedar Pacific have exchanged contracts on the first dedicated build-to-rent site that the private market will deliver in Canberra.

The government released the 7,070 sqm site in Turner (Block 3 Section 57) in late 2022.

The project will provide at least 270 additional rental dwellings on the Northbourne Avenue corridor. 15 per cent of the dwellings must be affordable rentals, which means at least 40 properties will be rented to eligible tenants at less than 75 per cent of market rate.

“Turner is an important acquisition for Cedar Pacific to continue the growth of our Build-to-Rent strategy and provides an opportunity to deliver high-quality rental accommodation in the undersupplied market of Canberra including much-needed affordable accommodation,” David Hill, the company’s chief investment officer, said.

“The proximity to Braddon, Civic and Australian National University together with an adjacent light rail stop will provide excellent access for the new age of renter looking for ultimate convenience and an enhanced living experience through professionally managed purpose-designed rental accommodation.”

Master Builders ACT welcomed the news, and supported the ACT Government’s measures to attract more private investment to the build-to-rent market.

“Ultimately, moving forward with initiatives like build-to-rent projects means more opportunities for our local building industry,” acting CEO Ziad Zakout said. “We welcome any initiatives to diversify our housing supply and create more work for builders, and hope to see more opportunities for our builders in the future.”

The Real Estate Institute of the ACT (REIACT) “welcomes this significant project as an addition to the supply of long term and affordable rentals in the ACT”, CEO Maria Edwards said.

“We have some catching-up to do compared to other states in the Build-to-Rent sector. Our congratulations to everyone who got this one across the line. We look forward to more innovation and support for investment in the territory by the private market.”

The ACT Government invested $80 million in the Affordable Housing Fund (a $20 million increase) to grow affordable rental properties by 600.

“The ACT Government is committed to delivering more housing options for Canberrans, including through the build-to-rent model,” Chief Minister Andrew Barr said. “The release of land for build-to-rent projects is among a range of measures to increase housing affordability, access and choice in Canberra to meet the needs of our growing population, which is on track to reach half-a-million people by 2027.”

The sale of the Turner site to Cedar Pacific was reportedly for $30 million.