Growth in Australia’s Build-to-Rent sector for FY2025

With over 100,000 units tracked and a 67,000-unit pipeline, Australia’s BTR sector shifts from announcements to execution

After a slowing in activity last year as developers and investors waited for the implementation of key policies, the Australian build-to-rent (BTR) sector saw a return to growth over FY2025 with unit starts pushing back above 6,500 (+24%).

Project announcements have slowed, nearly halving over the past year – a slide most notable in the more advanced Melbourne market. We are not too worried about this with over 50 developers in our project tracking yet to break ground on their first development. Focus has shifted from announcements to delivery.

There remains a sizeable pool of projects to work through. Making an allowance for a growing pool of affordable developments that include a market rental component, our project tracking now captures over 100,000 units, with a forward pipeline approaching 67,000.

Assets are beginning to transact. In the past year, Hines and Ontario Teachers purchased a 50% stake in the Arklife portfolio, while Local took over the Smith Collective on the Gold Coast. Sites are also changing hands, including Greystar selling their Fitzroy plot to Pembroke and Local buying 65-71 Haig Street from Samma.