The report from Cushman & Wakefield highlights the rapid growth of Build to Rent as one of the fastest growing commercial real estate sectors in Australia.
Although more established in markets such as the United States, Europe and Japan, the Build to Rent sector is gaining traction as residential property has traditionally not been an institutionally owned asset class in the country.
This is due to relatively low yields, and a market and taxation structure that favours capital gains. However, this is beginning to change as in recent years commercial investment yields have declined making those on Build to Rent more attractive.
Also, Build to Rent is viewed as an alternative to traditional commercial real estate for institutional investors, while also increasing housing market efficiency and providing an aggregate economic benefit to the country.
Cushman & Wakefield’s ‘Removing the obstacles to Build to Rent growth in Australia’ report discusses the key areas of the residential investment landscape, as well as potential synergies from a greater presence of Build to Rent (and institutional investment), the challenges the sector faces, and the potential for the sector should these challenges be overcome.
