5900 new build-to-rent flats on track for 2030

Australia’s build-to-rent (BTR) sector is gaining serious traction, with fund manager and developer Pro-invest teaming up with Japanese construction giant Kajima Corporation to create a $1.5 billion BTR portfolio over the next five years, reports the Australian Financial Review.

Their first project? A 300-unit mid-market apartment complex in Sydney. The joint venture has already committed $500 million and expects that figure to triple as the market responds to soaring housing demand.

“We’re not just building for the top end,” said Pro-invest chair Ronald Barrott. “We’re looking at the average person, including key workers who need to live near our cities.”

While other Japanese players like Mitsubishi Estate and Daiwa House have entered the premium end of the BTR market, this newest partnership targets more accessible housing in well-connected city and fringe locations.

Cities on the radar include Melbourne, Newcastle, and Adelaide.

Kajima, which owns builder Icon, plans to use its in-house construction arm for the projects. Barrott says this gives the venture more control over quality, cost and timing, an important advantage given recent challenges with construction cost blowouts.

BTR is still emerging in Australia, but it’s growing fast. Completions are expected to reach nearly 6000 units in 2025, up from just 2000 a few years ago. Institutions and super funds are now lining up to invest, attracted by stable returns and long-term growth.

Colliers BTR dashboard said 3,810 BTR units were completed in 2024, and 2025 will be the biggest year yet for completions in Australia.

For strata residents and owners, this rise of professionally managed rental communities could reshape what tenants expect, and put pressure on older buildings to keep up.

This joint venture is more than a property deal. It’s a sign that renting in Australia is maturing, and quality, purpose-built rental homes are no longer just an afterthought.

“We see huge opportunities for growth in the BTR sector in Australia and are pleased to work with Pro-invest Group to develop some ground-up projects in key urban centres,” Kajima Australia managing director Tatsuru Isano told PERE news.

“These developments will prioritise sustainability, community and affordability and will help address the shortfall in supply of quality rentals in the market.”