According to accounting and advisory firm BDO Australia, Australia’s Build to Rent pipeline has shot up by 35% to 39,300 apartments over the past 12 months, with a total capital value of around $30.1bn.
Just a year ago, the pipeline stood at 29,100 apartments and $21.4bn – representing growth of over 10,000 apartments and nearly $9bn over the past 12 months to 30 June 2025.
“Institutional investment in residential real estate is no longer a side bet; it’s a central strategy for long-term value and community impact. The momentum we’re seeing is a direct response to the sector’s resilience and the growing demand for purpose built rental housing, creating greater sense of community and wellbeing.”
Luke Mackintosh, Partner, Project & Infrastructure Advisory, BDO Australia
Victoria leads the national Build to Rent pipeline in both operational and total volume of 19,719 units. Victoria, however, is at a turning point with investment stifled by the many taxes imposed on the sector including the foreign purchaser additional duty tax surcharges.
New South Wales holds the second largest Build to Rent pipeline with a total of 11,864 apartments, driven by institutional capital interest, but most projects remain in planning, highlighting the need for streamlined approval pathways to unlock supply.
Queensland rounds up the top three with 6,124 units. Most institutional capital now remains focused on the eastern seaboard, where scale and market depth support further expansion.
“This level of growth is a turning point for investors, developers, Government and renters. We’ve more than doubled the number of completed and leasing apartments in the past year alone.
“These aren’t just numbers, they reflect real homes, real communities, and lasting economic impact, many of which include a component of affordable housing for key workers.
“The sector’s operational maturity is now proven. Our research shows 80 per cent of Build to Rent apartments in the pipeline are managed by dedicated platforms, ensuring quality, consistency, and a better experience for residents.
“Australia’s Build to Rent is not just being built, it’s being managed well, which is critical for both investor confidence and community outcomes. Clarity and collaboration across government, investors, and developers will unlock even greater potential.”
Luke Mackintosh, Partner, Project & Infrastructure Advisory, BDO Australia
Looking ahead, BDO has outlined six foundational priorities to drive the next phase of sector maturity: policy certainty and planning reform, tax and regulatory alignment, greater data transparency, elevated tenant experiences, measurable ESG outcomes, and broader diversification within Build to Rent models.
Knight Frank’s Head of Alternatives Australia Tim Holtsbaum stated that supportive Government policy would enhance the sector’s appeal to investors and developers in Australia.
“Targeted government intervention can help accelerate project viability and delivery. The MIT legislation passed at the end of last year was a significant step in the right direction and a positive example of the role policy can play in incentivising Build to Rent development and attracting institutional capital.
“However, while significant progress has been made on the policy front, there remains work to do. The Build to Rent tax environment in Australia is hard to navigate and a more uniform approach across states would be beneficial.
“Tax on foreign investors remains problematic and decreasing this burden for institutional investors from abroad will help to increase Australia’s competitiveness with other countries, where the barriers to entry from a tax perspective are typically lower.”
Tim Holtsbaum, Head of Alternatives Australia, Knight Frank
