PODCAST: Build-to-rent investors step up as apartment supply dwindles

Investors in build-to-rent residential are looking to take advantage of a subdued apartment market and slower commercial development to snap up high density development sites, driving momentum into a sector that has until now has struggled to gain traction.

As private apartment development slows, Australian fund manager Investa is among a host of local and international groups seeking to boost their build-to-rent development pipeline.

Approximately 18,500 for-sale units are expected to be built in the inner cities of Australia’s major capitals in 2021, JLL data suggests. The volume has been falling since a 2017 peak of just under 29,000 units.

James Greener, fund manager at Investa, says the build-to-rent experience trumps that of renting from mum-and-dad landlords due to “security of tenure, responsiveness to maintenance issues, and the ability to personalise the living space.” Investa has a pipeline of 1,000 units for its Indi product, in conjunction with Canada’s Oxford Properties Group.

Listen to Warner and Greener discuss the build-to-rent opportunity for investors and tenants in JLL’s Perspectives podcast.