After a long wait, Australia's build-to-rent (BTR) sector is finally emerging due to rising demand, supply shortages, and increased interest from local and global investors.
This report provides insights into the current state and future prospects of BTR:
- Currently, there are 8,350 BTR apartments under construction nationwide, with an additional 12,900 approved for development soon.
- By 2030, we anticipate the completion of 55,000 BTR apartments, accounting for only 1.5% of the total rental supply, highlighting its growth potential.
- Initial BTR developments are focused on inner fringe markets in Melbourne, Brisbane and Sydney, but the market is expected to expand to well-connected middle-ring suburbs.
- Investors are drawn to the residential sector due to its defensive characteristics, including the ability to adjust rental income quickly in response to inflation.