According to The Australian Financial Review, the build-to-rent sector is on the cusp of exponential growth after the development pipeline crossed a threshold of 11,000 units, with investors favouring assets delivering reliable income streams amid the coronavirus pandemic, a CBRE report says.
Over the past 12 months, more than 30 major build-to-rent (BTR) projects with an average size of 365 apartments totalling 11,667, were confirmed.
An additional pipeline estimated at more than 10,000 units were currently in due diligence with further announcements expected later in the year and beyond.
Offshore institutional funding accounts for over 50 per cent of the total pipeline, signalling the global attraction of the stable cash flow from BTR in a low-yield environment, CBRE's associate director of structured transactions and advisory Puian Mollaian said.
"The sector is bound to experience some significant growth in the coming years, although we're starting from a very low base," Mr Mollaian said.
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