AUSTRALIAN PROPERTY INSIGHTS
VERTICAL COMMUNITIES
CHART 3
GLOBAL POSITIONING
Market
% of Private Rental Market
Sector Stage
United States
12.0%
Mature Scaling
United Kingdom
5.0%
Australia
0.33%
Emerging
GLOBAL POSITIONING While the Australian sector currently accounts for less than 1% of private rental stock, it shares the same underlying drivers that fuelled international expansion: favourable demographics, sustained tenant demand, pro-development planning shifts, and increasing institutional interest. When the UK market was a similar size, it grew by four times in the following three years.
INSTITUTIONALISATION AND POLICY REFORM
The BTR investment landscape has improved considerably with recent policy support and growing investor alignment. Several states now provide land tax concessions, stamp duty waivers, or both – improving development feasibility. At the federal level, the 2024 tax reform introduced a 15% MIT concessional withholding rate for eligible BTR assets, bringing tax treatment into line with other core real estate sectors. Moving forward, the sector’s formal inclusion in PCA/MSCI benchmarks is expected to normalise BTR within institutional portfolios.
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CUSHMAN & WAKEFIELD
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