BTR sector in rapid growth, with 51,000 apartments now in the pipeline
Australia's build-to-rent (BTR) sector has recorded a substantial expansion, with its national pipeline growing to 51,000 apartments valued at $40.1 billion, according to new research from real estate and construction advisory firm BDO.
The figure represents a significant increase on the prior year's 39,300 apartments and $30.1 billion valuation.
In a notable shift, New South Wales has overtaken Victoria as the leading growth market for future BTR supply — the first time this change has occurred and one that reflects the impact of policy settings on capital flows.
Anita Hugo (pictured right), executive director of the Property Council NSW, attributed the change to investor confidence in the state's regulatory environment.
"What we're seeing in Sydney is capital responding to certainty," she said. "Stable tax settings, clearer planning pathways and a genuine appetite to work with industry are helping BTR projects move from concept to delivery – and that's translating into more high‑quality rental homes for people who need them."
Victoria retains the largest overall pipeline, though momentum has shifted decisively toward Sydney. The NSW Government's 2024 budget decision to make a 50% land tax concession permanent has been cited as a key factor in attracting investment to the state.
Luke Mackintosh, real estate advisory partner at BDO, said the sector had reached a turning point.
"Build-to-rent is no longer a concept story," he said. "It is an operating, income-producing asset class delivering real homes and stronger communities."
Australia now has 33 operating BTR platforms. Investor focus has shifted from project delivery toward long-term performance metrics, including tenant experience, management quality and returns. Despite rapid growth, the sector still accounts for a small share of total housing stock — a position that underscores the potential to further boost rental supply.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
