The lines between traditional commercial and residential investment are blurring, with Build-to-Rent (BtR) projects gaining in popularity.
A new report from audit, tax and advisory firm BDO, has revealed the Australian BtR market has grown by almost $9 billion over the past 12 months, a more than 40 percent increase.
The report states the national BtR pipeline, which produces residential properties designed and built exclusively for rental occupancy and held in single ownership by institutional investors, now included approximately 39,300 apartments across 113 projects, with a total capital value of around $30.1 billion.
“Just a year ago, the pipeline stood at 29,100 apartments and $21.4 billion — representing growth of over 10,000 apartments over the past 12 months.”
It found the Queensland market showed strong potential with 17 projects and 6124 units.
“Queensland offers strong investment potential due to inner-city housing shortages and consistently high rental growth, but faces delivery challenges from high construction costs and labour diversion to major infrastructure projects including the Olympic Games construction program,” the report stated.
Report author Luke Mackintosh, BDO Partner, Project & Infrastructure Advisory – Real Estate, said Build-to-Rent had emerged as a core strategy for investors seeking stable, longterm returns in a market increasingly defined by housing undersupply and evolving lifestyle preferences.
“As the lines blur between traditional commercial and residential investment, the living sector is no longer a side bet — it’s a central pillar of the future real estate landscape,” Mr Mackintosh said.
He said institutional capital, both from overseas and Australia, was flowing into residential real estate at scale, driven by the sector’s resilience, demographic tailwinds, and growing demand for professionally managed rental housing.
“The Build to Rent sector has officially arrived. Once considered niche, BtR is now a core strategy for institutional investors seeking long-term returns in a market shaped by housing undersupply and shifting lifestyle preferences.”
Download BDO’s: Build-to-Rent Report 2025
