If you spend any time with developers, investors, or policymakers in the property sector, you'll likely hear a lot about Build to Rent (BTR), which is one of the most exciting developments shaping Australia's housing landscape.
BTR is rapidly gaining momentum as a transformative solution to the country’s housing challenges, with advocates praising its ability to boost supply, enhance rental experiences, and offer long-term stability for tenants.
The sector is attracting billions in investment, with more than 8,000 dedicated BTR apartments under construction in 2023 and another 13,000 approved for development. Governments are also recognizing its potential, introducing supportive policies such as Victoria’s 50% land tax discount for BTR properties.
What is Build-to-Rent?
Unlike traditional residential developments—where apartments are sold individually—BTR properties are designed for long-term ownership and tailored to the needs of renters.
Many BTR projects offer premium amenities such as gyms, co-working spaces, and communal dining areas, fostering a sense of community and improving the overall rental experience. Additionally, these properties often feature more flexible lease terms, giving tenants greater security and stability.
Developers highlight that BTR provides a more professional and reliable renting experience, as entire buildings are managed by experienced operators rather than individual landlords. This ensures higher-quality service, better maintenance, and a consistent standard of living.
A Positive Step Forward for Housing Supply
In recent years, approvals for new housing projects have stalled, putting pressure on the rental market. However, experts believe that BTR can play a key role in addressing this challenge.
Ben Burston, Chief Economist at Knight Frank, acknowledges that while BTR isn’t a silver bullet, it will help ease pressure on the housing market by increasing supply and providing greater rental options.
"The housing supply issues are complex, but BTR can make a meaningful contribution," he says.
With Australia’s growing population and high rental demand, investment in BTR is expected to increase steadily, offering a more stable and sustainable housing model.
Unlike traditional developments, which are often driven by short-term capital growth, BTR is specifically designed to meet rental demand, providing long-term benefits for tenants and investors alike.
Policymakers are increasingly recognizing the value of BTR, and its continued growth could be a significant step toward a more balanced and accessible rental market for Australians.
Source: ABC News
