High land prices are holding up the development of new build-to-rent and office projects in Australia’s largest cities, says developer and fund manager Hines’ Asia Pacific regional chief executive Ray Lawler.

While Hines will start construction of three BTR projects in Melbourne next year – the first developments in a $1.5-billion, 2000-plus unit fund it announced last year – land values had not fallen as a result of higher borrowing costs, holding up acquisition of new sites, Mr Lawler said.