Develop to Rent in Australia

Identifying emerging markets and opportunities for Develop to Rent product to add value to the city, tenants and institutional investors and developers

THI undertook a global benchmarking exercise to identify characteristics of cities with successful Develop to Rent markets, and review case studies of developments at varying scales / urban settings. The characteristics, needs and drivers of existing and future Develop to Rent audiences were identified to further define product opportunities.

Global Benchmarking, Audience Analysis & Insight, Futures

The opportunity

Develop to Rent (D2R), build to rent, and multifamily investment markets are well established in the USA, and parts of Europe and Asia. With the growth of the related student and seniors housing markets, and the demand for investment opportunities in Australia, the D2R proposition is gaining traction in Australia.

With a different risk and investment profile, D2R projects have the opportunity to add value to a city, tenants, and institutional investors and developers. THI were engaged to explore this opportunity space by Lendlease.

Our approach

A desktop-based research exercise was undertaken to:

  • Identify global trends and drivers growing the D2R market and the design and delivery of D2R product
  • Profile major global cities with established D2R markets and the underlying conditions impacting on supply and demand, including supportive policies and initiatives
  • Review case studies of D2R products in varying contexts, creating a matrix of comparison points and features
  • Apply a segmentation model to identify global D2R audience groups, current and future, and their drivers and product appetites

From this large research base, THI drew insights on current leading practice in D2R and how they can add value to the city, tenants and the institutional investor and developer.

The outcomes

A detailed research report and workshop with the project team were the immediate outcomes of this project, bringing insight into the opportunity space beyond the traditional metrics.

This initial research has led to further investigation of future D2R markets in Australia, including producing heat maps of higher concentrations of potential D2R audience groups.