Data from Oxford Economics Australia presents the gradual progression of the Build to Rent sector in and around major cities such as Sydney and Brisbane, which have market shares of 24% and 19%, with Brisbane growing quickly over the last year.
The data shows that the sector is on track to more than double the number of Build to Rent units announced over 2022 by the end of this year.
Build to Rent schemes across Australia continues to swell, with c.45,000 units currently in the pipeline. Around 5,900 units have broken ground in FY2023, with an additional 15,000 geared to start across FY2024 and FY2025.
As the sector gradually gains maturity, developers are progressively settling on their chosen build forms and service models.
Build to Rent is set to be Australia’s most active institutional property class when it comes to new asset investment by the end of this decade.
According to Oxford Economics, many announced developments remain on a premium level, however an increasing number of providers are looking towards an affordable model, with support from federal and state governments seeking to address the nation’s housing crisis.
However, it has been found that a middle market for Build to Rent developments remains absent, which is proving necessary for the sector if it is to become a mainstream part of the Australian rental market.
The strong growth trajectory of the sector is anticipated to endure, with the stock of active units approximately reaching 100,000 by the end of 2030.
