Property consultancy Charter Keck Cramer’s upcoming National State of the Market Report highlights a sharp decline in Build to Sell supply and a surge in Build to Rent developments across major cities.
Charter Keck Cramer’s upcoming National State of the Market Report – Key Metropolitan Areas has discovered that there has been a 54% decline in Build to Sell apartments while Build to Rent surges 378% across capital cities.
Set for release in September, the report reveals significant structural changes in Australia’s residential apartment market over the past five years.
Preliminary data from the comprehensive report also shows a dramatic transformation in apartment supply patterns across Australia’s capital cities between FY2016-2020 and FY2021-2025.
Charter Keck Cramer states that the Build to Sell apartment sector has experienced a substantial contraction, with total supply falling by 54% compared to the previous five-year period.
The decline represents a reduction of 149,200 apartments across all capital cities. Sydney led the downturn with a decrease of 73,600 apartments, followed by Melbourne (-42,800) and Brisbane (-26,800).
Perth and Adelaide also recorded significant declines of 6,400 and 2,400 apartments respectively.
Only Gold Coast and Canberra bucked the trend, with modest increases of 500 and 2,300 apartments. In stark contrast, the Build to Rent sector has emerged as a major force in the apartment market, recording a remarkable 378% increase in supply.
This growth added 8,590 apartments across the capital cities during FY2021-2025. Melbourne dominated Build to Rent growth with 6,160 additional apartments, while Sydney contributed 2,100 units.
Brisbane and Canberra also recorded growth of 800 and 330 apartments respectively. Gold Coast and Perth recorded minor declines, while Adelaide maintained steady levels.
“These preliminary findings indicate a fundamental shift in Australia’s apartment development landscape, with traditional Build to Sell models giving way to institutional Build to Rent developments.
“This transition reflects changing investor preferences, regulatory environments and housing affordability challenges across major metropolitan areas.”
Richard Temlett, National Executive Director of Research, Charter Keck Cramer
The complete Charter Keck Cramer National State of the Market Report – Key Metropolitan Areas will provide comprehensive analysis of these trends, their underlying drivers and implications for developers, investors and policymakers when released in September.
