The Australian build-to-rent (BTR) sector is growing according to new analysis of the trend.

The analysis by Savills Australia labels BTR as a “resilient asset class”. It says investment in the sector more than tripled in 2023 compared to the previous five-year average.

The are 13,265 BTR apartments under construction throughout Australia, which will be completed within the next three years.

The report says there is also a pipeline of more than 32,000 BTR apartments, pending approvals and construction, which could possibly be delivered by the end of 2028, although only 42% of them are funded and likely to be completed.

Savills Head of Operational Capital Markets, Conal Newland, says that the significant pipeline of BTR projects could help Australia reach its target of building 1.2 million new homes in the next five years.

Newland says tax changes for foreign investment in development would encourage further projects.

“Policy changes at a federal level are fundamental to ensuring that the true growth potential of the BTR sector is fully realised,” he says.