According to Ray White, there is a growing demand for Built-to-Rent (BTR) assets from institutions.
“With the strong growth in median house prices across the country, as well as sizable ongoing rental growth due to the lack of supply and increased population, institutional investors have turned to residential as a suitable, lower risk investment opportunity,” they said.
They noted, that while Australia has no track record with BTR assets, it has grown in popularity over the past few years with land tax exemptions, improved planning and tax concessions for offshore investors/developers.
“Piquing interest of investors has been the long-term stable returns of residential assets in Australia and robust capital value increases across the country,” they said.
