With the Build to Rent tax reform legislation aiming to boost investment in apartment blocks designed and constructed for rental occupancy and retained in single ownership passed, there are signs momentum is beginning to show.
Knight Frank’s Australia Build-to-Rent Update for the fourth quarter of 2024 shows NSW has 15,089 build-to-rent units completed, under construction or planned, compared to Queensland’s 14,390 units. NSW has 3584 units completed or under construction and 11,505 in the development pipeline.
Victoria remains the sector leader with 25,538 units, but Sydney is expected to dominate 2025 as investors with established Melbourne-centric portfolios look to expand their presence across the Eastern Seaboard, the report said.
“Sydney has been slower out of the starting blocks compared to its Victorian counterpart but Build to Rent development activity is now accelerating as investors look to gain a foothold in the city,” Knight Frank partner, living sectors, valuation and advisory, John Paul Stichbury said.
The national build-to-rent landscape shows significant growth since 2018, with 19,308 apartments either delivered or under construction, and 40,191 planned.
Greystar announced on 6 February it had bought two existing office buildings for re-development as Build to Rent in the Inner Melbourne market of South Yarra.
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