Australia is witnessing a significant growth in the build-to-rent sector, with thousands of new apartment projects either proposed or already underway.

In this model, developers construct apartment buildings but retain ownership, opting to rent out the units rather than sell them.

This shift is opening up new avenues for residential mortgage lending and investment opportunities.

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

An additional 8,199 apartments are under construction, with around half expected to be finished in 2025, and a further 17,043 units in the approvals pipeline.

In November, the Federal Government introduced tax policy changes aimed at encouraging foreign investment in build-to-rent projects, while state governments are also considering or implementing incentives to support this development model.

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

Leigh Warner, JLL’s Head of Residential Research in Australia, notes that build-to-rent projects now represent about 10% of the Australian apartment development pipeline. For mortgage lenders, this growing sector presents new opportunities, with steady demand for rental properties and the potential for stable long-term returns.