Build To Rent To Grow
The build-to-rent market is tipped to continue growing.
Oxford Economics Australia economist, Michael Dyer, says by 2026 he expects that build-to-rent projects will make up a “notable component” of high-density projects.
As we near 2030 he predicts it will account for about a fifth of apartment development projects.
Build-to-rent projects are those in which newly constructed apartment buildings are owned entirely by one entity with all residences offered to the rental market instead of being sold individually.
“Build-to-rent is a bit better placed to accelerate than the traditional build-to-sell,” Dyer says.
Oxford Economics’ Australia’s latest research briefing on build-to-rent says the pipeline of developments continues to swell with about 45,000 units unannounced.
“Around 5,900 units have broken ground in FY2023, with a further 15,000 geared to commence across FY2024 and FY2025,” Dyer says.
