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Australia: Australia’s build-to-rent (BTR) pipeline has grown by 35 per cent over the last year to 39,300 apartments.
The pipeline has a total capital value of around $30.1 billion, according to financial services company BDO.
A year ago, the pipeline stood at 29,100 apartments and $21.4 billion in value – representing growth of more than 10,000 apartments and nearly $9 billion over the past 12 months to 30 June 2025.
“Institutional investment in residential real estate is no longer a side bet; it’s a central strategy for long-term value and community impact,” said Luke Mackintosh, partner, project & infrastructure advisory at BDO Australia. “The momentum we’re seeing is a direct response to the sector’s resilience and the growing demand for purpose built rental housing, creating greater sense of community and wellbeing.”
Victoria has the biggest operational and total volume of 19,719 units, but BDO says the state is at a turning point with investment stifled by taxes imposed on the sector, including the foreign purchaser additional duty tax surcharges.
New South Wales has the second-largest BTR pipeline with 11,864 apartments, driven by institutional capital interest, with most projects still in planning. Queensland completes the top three with 6,124 units.
Mackintosh said: “This level of growth is a turning point for investors, developers, government and renters. We’ve more than doubled the number of completed and leasing apartments in the past year alone. These aren’t just numbers, they reflect real homes, real communities, and lasting economic impact, many of which include a component of affordable housing for key workers.”
“The sector’s operational maturity is now proven. Our research shows 80 per cent of BTR apartments in the pipeline are managed by dedicated platforms, ensuring quality, consistency, and a better experience for residents. Australia’s BTR is not just being built, it’s being managed well, which is critical for both investor confidence and community outcomes,” he added.
BDO has outlined six foundational priorities to drive the next phase of sector maturity: policy certainty and planning reform, tax and regulatory alignment, greater data transparency, elevated tenant experiences, measurable ESG outcomes, and broader diversification within BTR models.
“Clarity and collaboration across government, investors, and developers will unlock even greater potential,” said Mackintosh.
This week, Local announced it had become the biggest BTR platform in Australia when it signed the Smith Collective property on Queensland’s Gold Coast.
Highlights:
• Australia’s build-to-rent (BTR) pipeline has grown by 35 per cent over the last year to 39,300 apartments
• The pipeline has a total capital value of around $30.1 billion, according to financial services company BDO
• Victoria has the biggest number of operational and pipeline units, followed by NSW and Queensland.
