The housing shortage, particularly among Australians over 50 who want to downsize, has placed stress on conventional markets. This has opened opportunities for models such as land lease communities, where residents buy homes but not the land they occupy. Macquarie's new vehicle, Macquarie Real Estate Partners, has already secured more than 2,000 housing lots across eight sites in Queensland and New South Wales.
One of the initial developments is a 293-home project in Flagstone, south of Brisbane. It will be built under Macquarie’s new Millbray brand across 12 hectares within a broader $3.9 billion master-planned estate. Land will be leased from developers like Peet, providing moderately priced homes designed for older buyers who want to access home equity without leaving their neighbourhoods.
Macquarie stands out through its appeal to international investors looking to enter the Australian housing market. Global capital is already active, with companies including Mirvac and Stockland involved in similar efforts. These investments reflect sustained confidence in the land lease model, which currently serves only around 2% of Australians aged over 55.
The Millbray brand intends to cater to the higher end of this demographic, offering a mix of home types within its communities. Queensland is the immediate focus due to its established market and availability of development-ready land, while similar projects in New South Wales are expected to follow. This approach benefits traditional developers by improving funding access and increasing housing diversity in their projects.
