Victoria may currently lead Australia’s build-to-rent sector, but New South Wales wants the crown and is changing laws to make it happen.
The NSW Government has moved to extend the life of its current tax cuts for new build-to-rent projects in the state indefinitely.
It introduced a bill to Parliament to do just that, after flagging the measure in the most recent Budget.
Currently, eligible new build-to-rent developments receive a 50 per cent reduction in assessable land value—a concession originally due to end in 2039.
Under the changes, the concession would continue indefinitely and remove the cap on the number of years owners can apply for it.
Construction must have begun after July 1, 2020, and the building cannot have been used for any other purpose.
The regulations prohibit build-to-rent properties from being subdivided or otherwise having ownership divided within the first 15 years of accessing the concession.
Property Council of Australia NSW executive director Katie Stevenson said it was good to see the government recognise the value of build-to-rent in providing more diverse housing stock.
“This is a constructive move from a government that’s listening to industry and acting to fix the barriers holding back housing delivery,” she said.
“Making the build-to-rent exemption permanent provides long-term certainty to investors and developers, helping to enable more high-quality rental homes to be delivered across NSW.”
Oxford Economics senior analyst Michael Dyer said the concessions were likely “partially baked-in” by developers already.
“Ultimately scrapping the deadline provides certainty for developers and investors. This will be more impactful for future waves of projects in the pipeline beyond the next few years,” Dyer said.
“It is also indicative of a broader, continued trend towards supportive housing supply policy we expect will persist.”
According to Knight Frank’s most recent update, Melbourne has retained the top spot on the build-to-rent podium.
Since 2018, Victoria has had 13,198 units either completed or under construction, with another 12,632 in the pipeline for a total of 25,830.
While Queensland is delivering smaller numbers, on a per capita basis it is well ahead of New South Wales.
In the Sunshine State, 4157 units have been completed or are under construction, with another 12,122 in the pipeline to total 16,279.
Of the four build-to-rent schemes opened in 2025, delivering 1298 units, two—Claremont Tower and Madison Grand—were in Melbourne and the others—Arklife Cordelia and Liv Anura—in Brisbane.
New South Wales has 5335 units completed or under construction, including the Apt.Residential project in Meadowbank (pictured top).
There are 16,690 in the NSW pipeline, bringing the total number of build-to-rent units to 22,025.
The Transport Oriented Development program is also expected to make more sites available to Sydney build-to-rent developers.
According to a report from Oxford Economics last month, there was a slight slowing in activity last year as developers and investors waited for the implementation of key policies.
“[In fact] we see some of the other NSW government supply policies like TODs and density bonuses as more impactful than a change with land tax,” Dyer said.
This year, it forecast the number of units delivered will be above 6500, an increase of 24 per cent on last year.
By 2030, annual starts are projected to hit 11,900.
But as the National Housing Accord period progresses, more legislative movement is expected across all levels of government, Oxford Economics senior economist Michael Dyer said.
