Build-to-rent is currently the talk of the Australian property market, not only as an alternative residential platform but also as an alternative investable asset class.
Much has been written on the Build-to-rent sector in recent times, particularly around educating Australians on the varying definitions and considerations across the sector and investigating existing Build-to-rent markets overseas such as the US and UK where more maturity exists. Over the last 12 months, more activity has started to occur in the Australian market. Major institutions have started to publicly announce their plans on entering and committing to the Build-to-rent sector and as a result a transition phase is currently underway moving the Build-to-rent asset class from an exploratory stage to one of action as the commitment of capital and development activity starts to build momentum. As this transition continues, Build-to-rent is positioned to be a prominent player in the suite of mainstream commercial property asset classes in Australia alongside office, industrial, retail and traditional Build-to-sell residential as Australia’s investible property universe continues to grow.
In this paper, we look at where the Build-to-rent asset class is currently placed and we expand in more detail on some of the information already discussed to date across the industry, including an overview of the Build-to-rent asset class, its benefits and where the opportunity might exist within the Australian property market moving forward.