BTR's potential

How BTR is helping to alleviate Australia's housing crisis

For years now, there has been a chorus calling for regulatory reform in the BTR space. This advocacy has been a tremendous example of the property industry coming together to ensure the right settings are in place for this important sector, which is still so new to the Australian market. As we explore in this report, we expect this advocacy and the resultant reforms will lead to continued investment and growth in the Australian BTR market, which is critical for our cities given the expected population growth and already historically tight rental vacancy rates.

However, we strongly caution against taking two steps forward and one step back with policies such as the previously proposed caps on rent. Not only will this hinder BTR's potential, but it will also cause supply shortage (and, consequently, increase rents even more in the long term) at a time when we need solutions, not more problems.

Allens and Urbis are proud to be a part of this advocacy, and we continue to call for action to ensure the BTR sector can realise its full potential to create more liveable cities, drive economic growth and play a key role in alleviating the ongoing housing crisis.

In this report, we look at:

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Where BTR was and where we are now: exploring the significant developments that have happened in this space, including the recent announcements regarding the managed investment trust (MIT) withholding tax rate, which are making BTR a more viable sector.

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The role of BTR in Australia's housing crisis: why more housing solutions are needed, and how BTR in particular will alleviate the pressures from Australia's growing population.

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Proposed policies and their potential impacts: how short-sighted policies such as proposed rent caps could hinder BTRs potential, and the damaging effect this will have on housing supply.

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Where to next for BTR?: including likely development structures and the flow of capital into the sector.