Resido apartments: Largest build to rent project welcomes first tenants

Tenants and their pets are moving in to New Zealand's biggest build-to-rent project next door to Auckland's Sylvia Park mall, but advocates say those most in need still can not afford them.

With 295 apartments, Resido owner Kiwi Property Group - which also owns Sylvia Park - says in three weeks the units are already at 18 percent occupancy.

The cheapest available studio units had prices starting at $630 per week, the Resido website shows, while a three-bedroom apartment could be as much as $1223 per week.

Prices for one and two bedrooms ranged from $645 all the way up to $950.

Laverne Clarke, a renter in Mt Wellington, was one of the prospective tenants who viewed two and three bedroom apartments a few weeks ago. She said the rooms were "beautiful", but were too expensive for her family.

"The rooms were double-sized with lots of natural light, they weren't your typical apartment. There was a well-equipped gym and even a media room you could book and for an extra $30 a week you could have secure underground carparking."

The apartment Clarke looked at came at a cost of $970 per week, and even though she loved it, she said when they took into account the extra parking cost, it took it over her weekly budget.

"It meant we'd be paying over $1000 a week between two of us and it just wasn't affordable.

"We ended up finding a beautiful character three bedroom home in the area instead".

KiwiProperty spokesperson Linda Trainer said the prices for Resido were chosen by researching the market to understand renters in the area.

"It was built with renters in mind and offers amenities that other places don't. You can bring your pets and really put down roots and stay as long as you want.

"These are brand new apartments that come with whiteware included along with a resident's lounge, co-working space, full gym and a community garden."

Trainer noted it was only a minute away from Sylvia Park, with trains and buses also nearby.

The prices of Resido were "expensive", Renters United spokesperson Zanian Steele said, and while he liked the idea of build to rent, it needed to be affordable.

"The majority of long-term renters, especially anyone on a low wage, won't be able to afford to live here. It excludes a huge portion of people from the market."

The idea itself was positive, Steele said, but there needed to be cheaper build to rent options.

Steele said build to rent did help make renters feel more secure in their homes and meant they could live "unimpeded" by a bad landlord.

"We have an issue here because people can't afford a house or a rental. Build to rent is a more sustainable model but we need more help for people who will be life-long renters.

"The housing market is overcooked".

Build to rent expanding

High-density build to rent homes are becoming increasingly popular in New Zealand and Resido isn't the only option for Aucklanders.

Trainer said build to rent was one of the largest and fastest growing asset classes, especially looking at places like the United States and Australia.

Simplicity Living is another major player in build to rent construction in Auckland. Managing director Shane Brealey said there was an "arms race" for many providers on who can have the biggest pool, gym or reception.

"Relying on premium rents isn't working and it doesn't build stable residential communities. It leads to a higher churn, higher costs and higher wear and tear.

"If you're paying 20 to 30 percent more to design and build the asset, your rents need to be higher to compensate."

Recently built Simplicity Living apartments in Mt Albert had weekly rent for a one bedroom beginning at $540, Brealey said, and about $640 for two bedrooms.

He said they were now working on a 297-home project just down the road from Resido, which he said would have similar rent prices to the Mt Albert apartments.

"We have a lean team using modern methods of construction and are able to deliver high quality new homes at about 30 percent less than market cost."