Key facts
- One of Australia's largest pension funds is purchasing completed apartment blocks.
- The fund is avoiding new build-to-rent developments.
- High construction costs and interest rates are cited as risks for new developments.
One of Australia's largest pension funds has shifted its investment strategy, opting to acquire existing apartment buildings rather than investing in new build-to-rent developments. This decision is driven by concerns over the escalating costs of construction and the impact of high interest rates, which are perceived to make new projects too risky. The fund's move signals a potential slowdown in new build-to-rent supply as investors become more cautious about development pipelines.