Build-to-rent units to dominate this major city in three years

According to The Australian Financial Review, Build-to-rent apartments comprise more than half of the forecast apartment supply coming into the Melbourne market in the next three years, despite commanding a premium of up to 26 per cent over the higher-end rental properties, property advisory firm Charter Keck Cramer says.
According to Charter Keck Cramer national executive director Richard Temlett, build-to-rent developers are in a better position to deliver supply compared with their peers developing build-to-sell projects.
“Build-to-rent developers don’t need pre-sales to get funding, unlike those developing to sell, so they can deliver supply faster, although they would need to prove the viability of their projects to be able to raise capital,” he said.
“While the strong rental demand will support the case for build-to-rent projects, lowering costs such as the tax imposed on foreign investors will speed up the delivery.”
The supply of build-to-rent apartments in Melbourne is expected to increase, with 4650 to be completed in the next 12 months. An average of 4100 annually is forecast in the subsequent three years, according to Charter Keck Cramer.

https://www.afr.com/property/residential/build-to-rent-apartments-to-dominate-melbourne-in-the-next-three-years-20240917-p5kb4z