The Australian Build-to-Rent (BTR) market, whilst still relatively new, is quickly gaining momentum. According to Property Council of Australia, the BTR sector in Australia is worth $16.87 billion, making up a mere 0.02% of the total BTR market, however if it were to reach just 3%, it is suggested the market could be worth upwards of $290bn. Knight Frank forecasts that Australia will have an annual delivery rate of 5,900 units from 2024 onwards, with 55,000 BTR units by 2030.

BTR offers an alternative to traditional homeownership, providing renters with high-quality, long-term rental options, community-focused living, and hassle-free maintenance. This underscores the significance of BTR investments in prime locations, which are strategically aligned with future urban development and infrastructure projects.

The recent sale price of $157.5 million for Dickson Village, a BTR project in Canberra, reflects a fully leased forecast yield of around 6%. This yield is an encouraging sign for potential investors and indicates the financial viability of BTR assets in Australia’s market. According to JLL data, the BTR pipeline has expanded significantly, with a 56% increase this year compared to last year. This includes 8,914 BTR apartments under construction – a 65% year-to-date increase. Additionally, plans for 6,862 apartments have been approved, marking a 15% increase, whilst the number of apartments proposed or in planning stages has surged by 78% to 16,269.

Wardle: https://wardle.studio/projects/dock-5-residential-tower/

In 2022, Melbourne was home to more than half of all BTR projects completed in Australia, with Queensland racing for the lead with 24%, possibly due to the impending Brisbane Olympics in 2032. Sekisui House’s $225m BTR project Summit & Ridge comprising 537 apartments in Wentworth Point has been approved for development, representing Australia’s receptiveness to BTR.

As the BTR market continues to evolve, it will play a pivotal role in shaping the future of Australian real estate. With this sector expected to boom over the coming years, it will assist Australia’s rental crisis and add more sustainable buildings to the Australian economy.

Anacle offers advanced property management software for Build to Rent (BTR) and Mixed Use scenarios, enhancing tenant experiences with the SimplicityERP platform. The system consolidates accounts, lease management, inspections, maintenance, compliance, tenant communication, document storage, and reporting into a single, unified solution.

Images source:
Wardle: https://wardle.studio/projects/dock-5-residential-tower/

Sources:
https://www.jll.com.au/en/newsroom/rental-crisis-response-drives-massive-rise-in-btr-projects
https://www.ahuri.edu.au/analysis/brief/what-build-rent#:~:text=A%202022%20report%20from%20Ernst,development%20(over%2019%2C000%20units)
https://www.afr.com/property/residential/aware-s-157-5m-canberra-village-deal-gives-early-glimpse-of-btr-value-20231011-p5ebbj
https://www.theurbandeveloper.com/articles/aware-build-to-rent-dickson-village-canberra

https://www.propertycouncil.com.au/property-australia/build-to-rent-sector-is-set-to-break-off-the-shackles