Living Sectors
Despite the immense growth in the global Real Estate ‘Living Sectors’, APAC has trended well below that of the US & European markets.
Living Sectors make up 5% of APAC commercial real estate investment. This is in contrast to the US at 40%, reflecting significant growth and demand for the sector since 2007 (up from 18%).
The numbers don’t show the true demand for Build to Rent as an asset class. However, the Build to Rent market is poised to take significant market share from more traditional commercial investments such as Office & Retail. The welcome announcement last week from the National Cabinet to reduce MIT tax rates on foreign investors will add to this trend.
Franklin St. is working with many groups looking to enter the Build to Rent market in Australia, alongside those already established. Through these networks, we are seeing increased demand for product.
If you have a project that might suit Build to Rent, get in touch.
Further information on how Build to Rent is emerging in Australia can be found at The BTR Equation or in our Investor Intentions Insight written and produced by Franklin St.
Jeremy Quinn | Tristan Quinn | Edward Quinn
Source: Franklin St. | Savills Operational Capital Markets UK
Date: May 2023