NSW Development News
BtR DEVELOPMENT SURGE SIGNALS SYDNEY MARKET SHIFT
Author: Leon Della Bosca Urban Developer
Sydney’s build-to-rent sector is gaining momentum as the New South Wales project pipeline overtakes that slated for Queensland.
Knight Frank’s Australia Build-to-Rent Update for the fourth quarter of 2024 shows NSW has 15,089 build-to-rent units completed, under construction or planned, compared to Queensland’s 14,390 units. This comprises 3584 units completed or under construction in NSW, and 11,505 in the development pipeline. Victoria maintains its position as the sector leader with 25,538 units, but Sydney is expected to take centre stage in 2025 as investors with established Melbourne-centric portfolios look to expand their presence across the Eastern Seaboard, the report said. “Sydney has been slower out of the starting blocks compared to its Victorian counterpart, but build-to-rent development activity is now accelerating as investors look to gain a foothold in the city,” Knight Frank partner, living sectors, valuation and advisory, John Paul Stichbury said.
The national build-to-rent landscape shows significant growth since 2018, with 19,308 apartments either delivered or under construction, and an 40,191 planned. Around 8900 dedicated build-to-rent apartments are currently under construction across Australia. Another 20,000 are approved for development over the next five years. Smaller markets are also emerging. The ACT recorded 1723 units either completed, under construction or planned, while Western Australia and South Australia have 1568 and 1191 units respectively. Recent legislative reforms have strengthened the investment case for build-to-rent developments. “The investment case for build-to-rent has arguably never been stronger and this year activity will accelerate as we enter a rate-cutting cycle,” Knight Frank partner head of
26 – February / March 2025
Powered by FlippingBook