Build-to-Rent Developments: A New Affordability Frontier for Wollongong Tenants

According to recent data, the median rent in Wollongong has increased by 10% over the past year, reaching $520 per week, making it challenging for tenants to find affordable housing options.

This trend matters now because the current property market in Wollongong is characterized by high demand and limited supply, driven in part by the city's growing popularity as a lifestyle destination and the ongoing renewal of the Wollongong CBD. The influx of buyers from Sydney has also contributed to the upward pressure on prices, with many would-be buyers opting to rent instead. As a result, renters are facing increased competition for a limited number of properties, particularly in sought-after coastal suburbs like Fairy Meadow and Thirroul.

In Wollongong, build-to-rent developments are starting to appear on the scene, offering tenants a new range of options. For example, the University of Wollongong's Innovation Campus is home to a number of build-to-rent projects, including the award-winning Porter Street development, which features 140 apartments and a range of amenities, including a rooftop garden and gym. Similarly, the Wollongong City Council's revitalization of the city centre has led to the development of new build-to-rent projects, such as the Keira Street apartments, which offer tenants stunning views of the surrounding landscape and easy access to local amenities like the Wollongong Art Gallery and the Illawarra Performing Arts Centre.

The Build-to-Rent Advantage

So, what do build-to-rent developments offer tenants that traditional rental properties do not? For starters, these developments typically feature a range of amenities and services, including on-site management, maintenance, and security. According to a report by the NSW Department of Planning, the average build-to-rent development in NSW offers 12 different amenities, including pools, gyms, and community rooms. In Wollongong, build-to-rent developments are also offering tenants more flexibility and security, with longer lease terms and more predictable rent increases. For example, a recent build-to-rent project on Crown Street in Wollongong is offering tenants three-year leases with rent increases capped at 3% per annum.

As the build-to-rent sector continues to grow in Wollongong, tenants can expect to see more developments popping up in areas like Smith Street in Fairy Meadow and Lawrence Hargrave Drive in Thirroul. With the NSW Government's Affordable Housing Strategy aiming to increase the supply of affordable housing in the state by 2028, build-to-rent developments are likely to play a key role in meeting this target. For tenants, this means more choice, more affordability, and more security, a welcome change in a market that has been challenging for renters in recent years. As the market continues to evolve, it will be interesting to see how build-to-rent developments shape the future of renting in Wollongong.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.