The Investor’s Advantage with Build to Rent in Melbourne by PDG

15 Apr 2024

According to recent reports on the residential housing market, house prices in Australia are highly disproportionate to income as reflected by the country’s high house price-to-income ratio. Australia has been facing fluctuations in property prices, hikes in housing interest rates, and mismatches between the country’s housing supply and demand. 

Forbes highlighted that Australia’s national home value has posted a 1.3% growth during the last 3 months from February. This presents a dilemma to families in search of owning safe and comfortable housing at an affordable cost.

Having high housing costs for many Australians of various ages, occupations, and income levels makes it difficult for them to budget their expenses, while still keeping their living and lifestyle needs in open consideration.

A common case scenario among real estate companies is their favouring of properties for sale, creating a shortage of quality rental housing for a large percentage of the public. This opening in the market has prompted concerns around housing security, stability, and inclusivity – begging the question of how accessibility can be driven for the broader market.

These concerns in the Australian real estate market urge the need to come up with new remedies that can address this rising cost issue, while staying sustainable. The current front-runner revolves around the build-to-rent Melbourne phenomenon in Melbourne, benefitting both ends of investors and tenants alike in a climate of low supply.


 Potential Benefits of Build to Rent Melbourne 

  • Stable Income: It is possible for investors to achieve rental income of sustainable quality by making long-term contractual arrangements with tenants, if they put such agreements in place on build to rent Melbourne properties. Such pacts often cover certain periods of typically five or ten years, thereby providing great passive streams.


  • Diversification: An investor can invest in a BTR property at different locations and different demographic populations to broaden their real estate portfolios, which serves the purpose of diversification.


  • Tenant Retention: When investing in BTR projects, satisfaction of residents is given priority by designing modern amenities, having on-call management, and engaging in social initiatives like community events. Happy tenants are likely to renew more often than others do, which will save investors resource expenditure over tenant turnover. 


  • Market Trends Alignment: The list of BTR investments corresponds to the movement of the market toward a gap in renting, rather than home ownership – this is especially noticeable among younger generations, as millennials transition to more mature progressions of their financial lives. The emerging need for regenerative and shareable housing options provides potential in ensuring the stability of BTR investment in the years ahead.


  • Social Impact: BTR properties address the current social concern, mainly being housing affordability by offering quality rental units. The need to nurture the coming generation of the independent working class is a strong concern for owners, developers and governing bodies alike, and the build-to-rent sphere offers a viable in-road.


  • Innovation and Sustainability: Most designs used in BTR projects are generally progressive and eco-innovative, including different types of energy-saving features, smart technology integration, and green construction principles. These features align with the ecologically-aware perspective contemporary tenants often propagate, and can help in increasing property values in the long run.


  • Partnership Opportunities: Collaborating with experienced build to rent developers provides investors with access to market insights, operational expertise, and scalable investment opportunities. These partnerships can lead to optimised investment strategies and improved portfolio performance.


At PDG, we embody excellence, innovation, and exceptional customer care, garnering a distinguished reputation over our 39-year journey. Collaborating with us means accessing a legacy of success rooted in strategic partnerships, a dynamic and motivated team, and unwavering client-centric values. Contact us to experience our commitment firsthand and discover the unparalleled quality we bring to build to rent projects. Check out our Liv Munro, Boyd Village and Roden & King to see for yourself.