Build-To-Rent Rising
The build to rent sector is on the rise according to the JLL Apartment Market Overview Q4, 2023.
It shows that the unit pipeline is increasing with nearly 60% of build to rent projects in Victoria, 24% in Queensland and 11% in NSW.
JLL says it is a way for developers to better deal with rising construction costs.
“The BTR project pipeline continues to grow, buoyed by the advantage of no pre-sales period,” the report says.
“But the BTR pipeline is still small and not large enough to offset the decline in Build to Sell supply.”
JLL head of living, capital markets, Jack Bergin, says investors are showing a strong desire to be part of the sector.
But he says further regulatory support is needed to support project viability and unlock the full potential of build-to-rent sector and deliver new housing.
The report says while BTR in Australia remains in its infancy it has gained momentum and drivers such as a tight rental market and low build to sell supply levels, support the need for more of it.
