Data from the newly launched Property Council/MSCI Australia Build-to-Rent Property Index shows Australia’s build-to-rent sector is gaining scale, with a growing pool of institutional capital and assets contributing to a clearer picture of the market.
The Index tracks 13 funds, 44 assets and 25 developments with a combined capital value of $10 billion.
Property Council’s Group Executive Policy and Advocacy Matthew Kandelaars said the data highlights the continued growth of build-to-rent as an emerging and important part of Australia’s housing mix.
“Build-to-rent has arrived, and together with other institutional housing models will play an important role in delivering more high-quality rental homes for Australians at scale,” he said.
“Institutional investors are looking for markets where they can invest with confidence. Better data, greater transparency and more mature investment settings all help attract the long-term capital needed to deliver more housing.”
MSCI Head of Private Assets Research, Pacific, Ben Martin-Henry, said the index addresses a key gap in market data.
“This index closes a significant data gap in the Australian market,” Mr Martin-Henry said.
“For institutional investors evaluating BTR as a standalone allocation, or comparing it against established commercial property sectors, a credible performance benchmark has been a missing piece.
“These results show the sector holding its own against core real estate on a risk-adjusted basis, with a distinctive yield and cost structure that investors now have the data to properly underwrite.”
The Property Council is encouraging more industry participants to contribute assets to the index to support its growth and strengthen Australia’s position as a destination for residential investment.
“Contributing to the Index not only improves market transparency but also sends a very strong signal that Australia’s institutional residential market is continuing to mature.”
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