Property consultancy Urbis has released its Australia Living Sectors Market Insights, highlighting that institutional capital continues to deepen in the Build to Rent sector.
This is underpinned by strong rent performance, undersupply, and rising demand for high-amenity rental housing.
The shift from the initial construction phase into ongoing operations is well underway, with around 50 Build to Rent schemes now active across Australia.
Activity is concentrated in Melbourne, followed by Sydney and Brisbane. Lease-up results have been robust, with some developments reaching occupancy levels above 90% within their first six months, supported in part by incentives of up to three months’ rent free.
Urbis found that assets that have been in operation for over twelve months are generally sustaining occupancy rates above 95%.
Persistently low vacancy rates, coupled with a limited pipeline of new completions, are expected to maintain upward pressure on rents.
Accordingly, interest from international capital remains strong, underpinned by the appeal of stable, long-term returns and the sector’s growth trajectory. The key is to align on return expectations, according to Urbis.
