Australian Property Investor
Australia’s build-to-rent (BTR) sector has spent the past few years proving it can scale.
The coming year will determine whether it can sustain that growth.
As the sector enters 2026, delivery economics will emerge to become a defining constraint.
Rising delivery costs, tight labour markets and decades of declining building productivity will pose a far greater challenge than demand or capital.
In this environment, the industry’s next chapter will depend far more on how efficiently projects can actually be delivered.
The momentum in the BTR sector is undeniable. Rapid population growth and chronic undersupply have been fuelling demand, while favourable macroeconomic settings in Australia have boosted global investor confidence in the sector.
Policy shifts have also supported BTR projects, with federal reforms improving tax settings.
For example, Foreign Investment Review Board fees were reduced, and a concessional 15 per cent withholding rate under the managed investment trust regime was introduced in 2023.
According to Knight Frank forecasts, a record 6,000 new BTR units are on track for completion in 2025, up from 4,660 delivered in 2024.
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