Buddle Findlay partner says boom coming in build-to-rent & commercial properties.
A property and construction law specialist is predicting a boom in Build to Rent housing and blue-chip commercial investment, especially from offshore, following the election.
Paula Ormandy has almost two decades’ experience in major projects, spanning leasing, property development, high-value portfolio acquisitions and disposals and advising large global corporates on entry to the New Zealand market – and says the new Government has the potential to be a real catalyst for the local Build to Rent market.
As chair of the Property Council’s Residential Development Summit for the past three years, Ormandy also sat on the Ministerial Reference Group for Housing and has championed alternative housing, such as Build to Rent, shared equity and rent-to-buy. She recently supported Kiwi Property on its first Build to Rent project at Sylvia Park, aimed at providing long-term, affordable accommodation for renters similar to that seen in the UK and elsewhere.
Paula Ormandy, Buddle Findlay Auckland Property Partner.
“The Property Council calculated that, had the right legislation been in place over the previous term of government, we could have seen 8000 Build to Rent homes built to house around 16,000 New Zealanders,” she says. “The National Party has promised to introduce this legislation within its first 100 days of forming the new government, which could unleash 25,000 homes over the next 10 years.
“This is an incredibly exciting opportunity for investors and the signalled changes to the Overseas Investment Act will also drive renewed interest in New Zealand.”
She believes the impacts of the change of government will also be seen in the commercial market: “Over the past 24 months, the sentiment from overseas investors has been that government policies weren’t favourable, but now we’re seeing particular interest from investors in Asia, including recent interest from Korea, who are looking for the logical next step after entering the Australian market.”
Ormandy, newly appointed as a partner in the Auckland property team at law firm Buddle Findlay, says that while the secondary commercial market has slumped, with older properties standing empty, investors are hungry for premium commercial investments with high yields, like Commercial Bay.
However, there will still be challenges for the local property sector to navigate. Ormandy believes National’s proposed removal of depreciation from commercial and industrial properties will see costs passed on to tenants and carries the risk of disincentivising ongoing refurbishments of ageing stock and investment in new buildings.
She also sees an inevitable “meeting of minds” around the true value of commercial properties – noting there had previously been a sizeable gap between vendors’ price expectations and what buyers were prepared to pay.
With these economic conditions, legislative change and environmental concerns set to challenge the construction sector over the next 12 months, Ormandy is looking forward to helping Buddle Findlay’s clients navigate the rapidly-evolving conditions.
Daniel Kelleher, Buddle Findlay Auckland Property Partner.
Buddle Findlay’s property practice has advised on such projects as Auckland’s Light Rail, BNZ’s flagship head office redevelopments in Auckland and Wellington and Buddle Findlay’s property practice has advised on such projects as Auckland’s Light Rail and BNZ’s flagship head office redevelopments in Auckland and Wellington.
Tom Bennett, Buddle Findlay Auckland Property Partner.
Tom Bennett, also a partner in the Auckland property practice, welcomes Ormandy’s experience and skills to the business, which will provide clients across the country with even greater expertise and depth of knowledge: “Paula’s outstanding experience, particularly in the private sector, will enable us to grow our capabilities still further and pass on her knowledge to the junior members of our team.”
Ormandy says the issues the Buddle Findlay property team helps clients navigate have implications far beyond the sector. “Carbon reduction, rising costs and addressing underinvestment in infrastructure are three of the biggest issues facing the whole country, and I’m really excited to be helping facilitate projects that have the potential to unlock growth, jobs and more affordable homes while creating a more sustainable future.”
For more information: Please contact the Buddle Findlay property team here.
