Australia\u2019s living sectors are no longer on the fringe. Build to Rent, purpose-built student accommodation (PBSA), co-living and land lease communities are now recognised as critical parts of the national housing solution.<\/p>\n
Momentum is building, but can these models scale? That\u2019s the question explored in FuturePlace\u2019s new report,\u00a0\u2018Building Momentum: Progress and Priorities for Australia\u2019s Living Sectors\u2019. Based on in-depth interviews with leaders across the sector, it highlights what\u2019s working, where friction remains, and what needs to shift to unlock national delivery.<\/p>\n
Download the full report here<\/a>\u00a0to explore the insights driving this conversation.<\/p>\n Living sector models gaining market maturity<\/p>\n Across the living sectors, we\u2019re seeing real traction:<\/p>\n PBSA is rebounding, with international\u00a0enrolments<\/a>\u00a0hitting 566,000 in 2024 and building approvals nearly\u00a0doubling<\/a>\u00a0year-on-year.<\/p>\n Build to Rent is gaining maturity, with developers adopting fund-to-completion models and a growing public awareness of the asset class.<\/p>\n Land lease communities\u00a0continue to perform strongly, supported by policy changes in NSW and a solid base of demand from downsizers and retirees.<\/p>\n Co-living models\u00a0are becoming more flexible, with PBSA operators repurposing their expertise to meet new use cases.<\/p>\n These developments are reinforced by policy shifts such as the MIT withholding tax reform, and institutional appetite is showing early signs of recovery.<\/p>\n \u201cMore institutional capital will come to Australia. More activity in Sydney than Melbourne. Tailwinds for townhouses and house-and-land. Green shoots for single-family housing (SFH).\u201d <\/p>\n Luke Mackintosh, BDO<\/p>\n Systemic friction is slowing the sector<\/p>\n Despite notable momentum, systemic barriers continue to limit the living sector\u2019s ability to scale. Progress is being made, but critical structural issues are stalling delivery, discouraging domestic investment, and inflating risk.<\/p>\n Domestic capital remains untapped<\/p>\n While global investors are actively deploying capital into PBSA and Build to Rent, Australia\u2019s booming superannuation sector is still largely absent. Lack of index inclusion and limited familiarity with the asset class make it difficult for funds to justify exposure.<\/p>\n \u201cWe manage $13bn in assets from global institutional capital, yet none comes from Australian superfunds. <\/p>\n \u201cWith their approximate $3.4tn in capital, it\u2019s a missed opportunity that more isn\u2019t directed into the PBSA sector.\u201d\u00a0<\/p>\n Anouk Darling, CEO, Scape<\/p>\n Policy complexity is undermining investment confidence.<\/p>\n Australia\u2019s tax and planning environment is highly fragmented, with varying surcharges, eligibility rules and approval timelines across states. These inconsistencies make national investment strategies difficult to execute and reduce the appeal of local projects compared to global alternatives.<\/p>\n \u201cIn the UK, you don\u2019t really discuss tax until a deal is well-progressed. In Australian residential, tax is half the conversation upfront.\u201d\u00a0<\/p>\n James Greener, Charter Hall<\/p>\n Feasibility challenges are compounding<\/p>\n Rising construction costs, prolonged planning delays and flawed assumptions in financial modelling, such as applying Build to Sell metrics to Build to Rent, are eroding project viability. Even well-located sites can\u2019t get off the ground if the numbers don\u2019t work.<\/p>\n \u201cYou can have the best-located project in the world, but if the numbers don\u2019t work, it won\u2019t get built.\u201d<\/p>\n James Greener, Charter Hall<\/p>\n In short, the fundamentals are strong but without structural reform and capital certainty, many high-potential projects will remain stuck at the starting line.<\/p>\n What industry leaders say must change<\/p>\n Despite growing interest and isolated policy wins, Australia\u2019s living sectors still face structural barriers that are limiting investment and slowing delivery.<\/p>\n The\u00a0Building Momentum\u00a0report outlines five policy shifts repeatedly raised by senior leaders across development, investment and operations:<\/p>\n Index inclusion for Build to Rent and PBSA, which would allow super funds to allocate capital under existing mandates, unlocking billions in potential domestic investment.<\/p>\n Harmonised tax treatment, including the removal of foreign investor surcharges and consistent GST rules across jurisdictions, to restore deal viability and attract long-term capital.<\/p>\n Streamlined planning pathways, with faster, nationally aligned approval processes to reduce risk and bring projects to market sooner.<\/p>\n Modernised tenancy laws, particularly around Residential Tenancy Acts, to reflect the unique operating models of purpose-built housing and avoid regulatory mismatches.<\/p>\n Formal recognition of rental housing as critical infrastructure, ensuring Build to Rent, PBSA, co-living and land lease communities are embedded in national and state housing strategies.<\/p>\n \u201cThe private sector is here to help and solve for housing. We need to work together.\u201d <\/p>\n Anouk Darling, CEO, Scape<\/p>\n Keep the momentum going<\/p>\n The insights in\u00a0\u2018Building Momentum: Progress and Priorities for Australia\u2019s Living Sectors\u2019\u00a0reflect conversations happening across the country, from boardrooms to building sites. Drawing on interviews with leaders in Build to Rent, PBSA, co-living and land lease communities, the report captures where real progress is being made and where barriers persist.<\/p>\n If you\u2019re working in housing, planning, investment or policy, this report offers a clear snapshot of where the sector stands and what it needs next.<\/p>\n