Property Industry Weighs in on 2023 Commercial Sector
The Urban Developer
Taryn Paris
22 December 2022
Chrystan Paul
Chief Executive
Alt Living
“Going into 2023, I expect to see an escalation of the same tailwinds that helped to propel build-to-rent in 2022—namely the slowdown of construction for new build-to-sell dwellings and an increase in net overseas migration, both of which will add significant pressure to an already supply constrained rental market across all capital cities.
“As completed build-to-rent assets achieve peak occupancy in 2023, I believe the benefits of the build-to-rent model will gain wider recognition from a resident’s perspective. As renters move into brand-new assets, they will start sharing their experiences via social media, word of mouth and consumer-focused media.
“Completed build-to-rent assets will benefit from upward inflationary pressure on rents, while development projects will have to grapple with rising interest rates and construction costs, resulting in project underwrites being rewritten across the board.
“However, I do not foresee a slowdown in build-to-rent acquisition activity and expect build-to-rent developers to fill the void in certain markets, where traditional build-to-sell developers may be struggling and having to exit sites.”