A NSW Government website

Build-to-rent housing

Build-to-rent housing is large-scale, purpose-built rental housing that is held in single ownership and professionally managed. Build-to-rent housing can provide more rental housing choice and support construction jobs to drive economic recovery.

The introduction of build-to-rent housing into the NSW planning system in February 2021 supports changes to the taxation settings for this development type that were introduced in July 2020. The build-to-rent housing provisions were transferred to the Housing SEPP when it was made in November 2021.

The build-to-rent housing provisions:

  • allow development to be used as build-to-rent housing anywhere that residential flat buildings or shop-top housing are permitted, as well as in the B3 Commercial Core, B4 Mixed Use and B8 Metropolitan Centre zones
  • include minimum car parking rates and apply councils' maximum car parking rates where relevant
  • apply council height and floor space ratio standards
  • prevent residential subdivision for 15 years in all zones, except the B3 zone where build-to-rent housing development can never be subdivided into separate lots
  • require active uses at street level in business zones for any part of a build-to-rent housing development that faces a road
  • support the flexible application of the Apartment Design Guide, encouraging consideration of the amenity provided by common spaces and shared facilities
  • include a state-significant development pathway for build-to-rent housing developments that have a capital investment value of more than $50 million for the Greater Sydney region (except in the City of Sydney) and more than $30 million for development on other land.

NSW Treasury has released build-to-rent guidelines (PDF, 504 KB) setting out the eligibility criteria that need to be met to qualify for tax concessions.

Guidance on flexible design

Build-to-rent developers tend to focus on shared facilities and services and more communal space than build-to-sell. Tenants may also enjoy the security of a longer-term lease and convenience of on-site management. 

The build-to-rent housing and flexible design fact sheet (PDF, 131 KB) provides information on the criteria and guidance for design and assessing build-to-rent residential apartments. It also explains when consent authorities may support flexible design.

For more information, email [email protected] or call 02 8289 6701.