Australia is experiencing a build-to-rent boom, with thousands of new apartments either proposed or already under construction.

More developers are shifting towards the build-to-rent model, where they construct apartment buildings and retain ownership, renting out the individual units rather than selling them.

This trend is opening up new opportunities for residential property investors.

According to JLL, there were 9,180 operational build-to-rent apartments by the end of 2024, with 4,147 of those completed last year alone.

Another 8,199 apartments are currently under construction, with around half expected to be finished by 2025. Additionally, there are 17,043 apartments in the approval pipeline.

In November, the Federal Government introduced tax policy changes to encourage foreign investment in build-to-rent projects, further boosting this sector.

State Governments are also exploring various incentives to promote the development of build-to-rent properties.

Victoria leads the way, accounting for 52% of the build-to-rent pipeline, followed by Queensland at 24%, and New South Wales at 7%.

JLL’s Head of Residential Research in Australia, Leigh Warner, notes that build-to-rent projects now represent about 10% of the Australian apartment development pipeline, highlighting the growing significance of this market segment.

For residential property investors, the build-to-rent sector presents a new avenue for stable returns, driven by strong demand for rental properties and favorable government policies.