Property advisory Charter Keck Cramer’s State of the Market report for Adelaide (H1 2024) focusses on the progression of the Build to Rent sector thus far in the city.
Overall, the Australian Build to Rent market continues to develop and grow, with the asset class becoming increasingly better understood among developers, financiers and renters.
In Adelaide, there are no Build to Rent developments either completed or under construction at present.
Currently, the Adelaide market is significantly smaller and less mature than those in Sydney, Melbourne and Brisbane, where the Build to Rent sector has started to emerge at scale.
A total of 240 Build to Rent apartments have now been approved in Adelaide’s City Fringe, and subject to the ability of the developers and their respective platforms to raise capital, are due to be delivered in FY2027, the report found.
Charter Keck Cramer believe that the emergence of the Build to Rent market is an important step in addressing the severe supply shortage of rental accommodation in Adelaide, where the vacancy rate is under 1%.
Demand for rental accommodation will be supported by the propensity for overseas
arrivals to rent, alongside a structural change in living preferences, and a growing proportion of the population renting – and renting for longer.
Over the next decade, the report highlights that these tailwinds provide strong support for the emergence of Build to Rent in Adelaide.
