Mirvac and Frasers drive soaring 2020 Build-to-Rent pipeline

Melbourne remains the top investment destination geographically, due to its more accessible and affordable market for site acquisitions
Mirvac and Frasers drive soaring 2020 Build-to-Rent pipeline
Mirvac's recently completed Pavilions at Sydney Olympic Park
Joel Robinson February 15, 2021

Australia's build to rent pipeline has grown by nearly 70 per cent over 2020, new research by CBRE has found.

Their Build-to-Rent development pipeline report showed a 68 per cent expansion, topping 40 projects. The total number of units was approaching 15,000 – a new high for the asset class.

There was a 28 per cent increase in new projects in the second half of last year relative to the first six months of 2020, the half-yearly profile of supply and development projects highlighted.

"As the pipeline continues to expand, the aggregate size of the market is currently estimated to exceed $10 billion with an additional $3-5 billion in the pipeline currently under consideration or at various stages of due diligence", the reported noted.

The second half of the year saw the completion of Mirvac’s Pavilions at Olympic Park in Sydney and Lateral Estate’s first stage in Green Square.

Queensland also increased its share of the pipeline with new large scale schemes announced by Frasers and Mirvac following Gold Coast’s lead which already has a number of BTR projects.

Melbourne remains the top investment destination geographically, due to its more accessible and affordable market for site acquisitions. Investors continue to pursue Sydney opportunities as Australia’s premier gateway city.

"We expect the momentum to be maintained with more projects announced as developers work through a pipeline of several thousand units currently under due diligence and taking advantage of recent tax reforms enacted in NSW and Victoria.

"The effects of COVID-19, while having had a significant impact across the economy, appear not to have derailed many groups’ plans.

"On the contrary, it may have stimulated further interest for BTR both from developers as well as investors, some of which are recording relative outperformance of BTR assets in their global portfolios."

Joel Robinson

Joel Robinson is the Editor in Chief at Urban.com.au, managing Urban's editorial team and creating the largest news cycle for the off the plan property market in the country. Joel has been writing about residential real estate for nearly a decade, following a degree in Business Management with a major in Journalism at Leeds Beckett University in England. He specializes in off the plan apartments, and has a particular interest in the development application process for new projects.

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