Property developers building estates for NSW renters will be eligible for tax discounts and planning exemptions under a state government plan to boost the rental market.
Treasurer Dominic Perrottet and Planning Minister Rob Stokes on Friday finalised policy changes aimed at enticing "build-to-rent" developers to the state.
Potential incentives include a minimum 50 per cent reduction on land tax and an exemption from foreign investor surcharges for eligible build-to-rent developments until 2040.
"For too long our housing market has ridden the boom and bust cycle, and build-to-rent housing can offer longer-term certainty for renters and investors alike," Mr Stokes said in a statement.
"As our housing system evolves to better meet the needs of NSW households and families, it's critical our planning system is responsive and flexible to new development models."
An eligible development plan must have at least 50 dwellings to rent and must not be subdivided for 15 years after receiving concessions.
However, The Urban Taskforce chief executive Tom Forrest said the measures aren't enough.
"The number one reason why property prices in Sydney are so high is the lack of housing supply," Mr Forrest said in a statement.
"The real question here is: will this actually produce any Build to Rent apartments?
"Urban Taskforce is hopeful - but these policy adjustments will make only a marginal change to actual housing supply when we need major reforms."
Australian Associated Press