Chances are you’ve not heard about build-to-rent projects, which isn’t surprising. While build-to-rent occurs quite significantly in foreign housing marketing such as the United States where it accounts for about 12% of the housing market and the UK where it is about 5%, in Australia BTR’s account for just 0.2% according to a recent report by Domain.
This means, of the 2.5 million rental properties in Australia, the majority are individually owned by investors. The concept behind BTR’s is apartment-style rental accommodation that is built, owned and managed by a corporation. This would create more sustainable options for long term tenancies with increased permanency and affordability.
An increase in build-to-rent apartments in Australia from 0.2% to about 3% would mean a rapid injection of approximately 350,000 extra homes for rent, the Domain report says. Currently Melbourne leads the way with the biggest BTR market share in Australia at 48% followed by south-east Queensland with 39%.
Could they be the answer? Experts do suggest build-to-rent projects may resolve our affordability and availability issues in the rental property market.
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