Build-to-Rent Investment Rises

Development of Build-to-Rent (BTR) projects is becoming increasingly important as changes to taxation rules are tipped to reduce the rental pool.

According to Cushman & Wakefield, International Head of Living, Conal Newland, BTR is no longer a niche investment class but an essential component of rental property supply.

He says investors in BTR are focusing on long-term fundamentals rather than short-term conditions and that the sector has emerged as a recognised asset class.

Newland says improved planning certainty, faster approvals and greater policy consistency are essential if the BTR sector is to reach its full potential.

“As Australia continues to confront housing affordability and supply challenges, Build-to-Rent will not be the sole answer. But it is rapidly becoming one of the most important pieces of the solution,” Newland says.

Despite it becoming more popular and increasingly a core component of global institutional portfolios, he says it is not a standalone solution to Australia’s housing challenges.