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