BDO Build to Rent data: Sydney surges as Australia’s build to rent market enters its next phase
BDO Build to Rent data: Sydney surges as Australia’s build to rent market enters its next phase
Australia’s institutional Build to Rent (BtR) sector has entered a new phase of maturity, with the national pipeline rising to 51,000 apartments (operating, under construction or in planning) and an estimated total value of $40.1 billion, according to BDO Australia’s latest report, 2026 Build to Rent report: A changing of the guard in Australia's living sector.
That’s up from 39,300 apartments and $30.1 billion a year ago; a lift of around 30% in apartments and 33% in total value in just 12 months. Behind those headline numbers is a defining shift; Sydney and New South Wales is setting the pace for the next wave of BtR growth in Australia.
“Build to Rent is no longer a concept story. It is an operating, income-producing asset class delivering real homes and stronger communities,” said Luke Mackintosh, Real Estate Advisory Services partner at BDO Australia.
“For the first time since the emergence of BtR in Australia, New South Wales has overtaken Victoria as the dominant growth market for forward pipeline delivery. This matters because it signals when changes to planning and State taxes occur capital investment is following, which together is supporting the delivery of new BtR housing at scale, Mr Mackintosh continued.
“Targeted planning and tax policy in NSW has driven strong growth in the forward pipeline of BTR housing. The opportunity now exists, for policy makers to cement NSW as the home of BTR through extending existing BTR exemptions for foreign Surcharge Purchaser Duty to operational BTR assets, aligning it with other institutional grade asset classes. This is critical to allow existing capital to be recycled and new “core” capital to flow into the sector.
“And, as for renters,” continued Mackintosh, “As more BtR projects move through approvals and into delivery, renters should see more professionally managed rental options coming online, particularly in Sydney. This increase in supply and competition will help ease pressure over the medium to long time frame providing tenants with greater choices.”
BDO’s Q1 2026 analysis shows Australia now has 33 operating platforms (up from 29), with sector activity increasingly supported by dedicated management models and a stronger focus on tenant experience. As more projects move from planning to delivery, attention is shifting from “how fast can we build?” to “how well can we operate?”, with resident outcomes and long-term performance now at the centre of decision-making.
Growth, with a changing map
The eastern seaboard remains the heartland of the sector, but momentum is shifting from Melbourne to Sydney. Victoria still has the largest BtR pipeline (24,855 apartments across 65 projects), followed by New South Wales (17,465 apartments across 51 projects), which is now leading growth in planned developments. The shift is most visible in Sydney; platforms are concentrating expansion, with Coronation now the largest BtR platform nationally (5,378 apartments) and BDO analysis showing its portfolio is currently entirely Sydney-based.
“Melbourne helped institutionalise BtR in Australia, and it remains the country’s largest market today,” Mackintosh said. “But the growth story has moved. Sydney is closing the gap rapidly, and it’s reshaping national delivery patterns in the process.”
Queensland remains the third-largest market, with 6,301 apartments across 17 projects, supported by strong demand but challenged by construction costs and labour competition from major infrastructure programs in the lead-up to the 2032 Olympic Games.
A sector built on people, run for the long term
BDO’s Build to Rent Report positions BtR as a people-first response to Australia’s evolving rental needs; combining professionally managed homes with amenities and services designed around everyday life. The sector is still small relative to Australia’s overall rental market, representing only around 1.15% of rental stock and 0.31% of total housing stock, underscoring both how early the market remains and how much runway exists for future growth.
Looking ahead, BDO’s research suggests BtR could reach 350,000 apartments over the next 10 years if policy settings continue to improve and investment conditions remain supportive and state governments' removal of foreign Stamp Duty surcharges aligning BTR with other institutional grade assets such as industrial, commercial, Purpose-Built Student Accommodation and Co-Living.
“This is what momentum looks like when it’s backed by clear policy settings,” said BDO partner, Luke Mackintosh.
“BtR is creating more choice for renters, more certainty for investors, and more capacity for cities because it is designed to be owned and operated for the long term. Institutional BtR won’t replace the need for Build to Sell product and first home buyer demand; this demand will always exist, it is about providing greater rental choices in a very tight housing market.”
What needs to happen next for BtR?
BDO has identified six priorities to support the sector’s next stage of growth: policy certainty and planning reform, tax and regulatory alignment, greater data transparency, elevating the tenant experience, measurable ESG outcomes, and diversification within BtR models.
BDO’s platform survey suggests tax and policy settings remain the biggest challenge on delivery at scale. Respondents identified the current GST treatment of institutional BtR as a major feasibility issue, with the sector unable to claim GST input credits in the way other investment grade assets can (adding up to 10% to project costs). Platforms also pointed to state-based foreign purchaser additional duty as a significant deterrent to offshore capital, citing Victoria’s combined surcharge and stamp duty settings as a drag on investment and influencing where projects and acquisitions are pursued.
“If we want delivery at scale, we need the settings that make delivery possible,” Mackintosh said.
“Planning certainty, aligned tax treatment, and clear benchmarks will help turn more projects into homes and help more Australians access a better rental experience.”