Shaping the future of Build to Rent with Bates Smart Director Julian Anderson

With Build to Rent (BTR) emerging as a vital component of Australia’s housing market, its future development will be shaped by industry leaders and advocates working to improve policy, sustainability, and design efficiency. 

Julian Anderson, Director at Bates Smart, has been appointed to join the Property Council of Australia’s VIC Build to Rent Committee for 2025/26. With extensive experience in architecture and urban design, he has played a key role in shaping Melbourne’s BTR landscape, drawing on global best practices from the US and UK to inform new developments.

In this interview with Architecture & Design’s Digital Editor Clémence Carayol, Julian Anderson discusses his vision for the future of BTR in Victoria, the challenges facing the sector, and the innovative design strategies that will define the next generation of rental living. From modular construction and prefabrication to community-focused amenities and sustainable urban planning, he shares insights into how BTR can evolve to meet the changing demands of renters while addressing Australia’s housing supply crisis.

Architecture & Design: What are your key priorities as a member of the Property Council of Australia VIC: Build to Rent Committee for 2025/26?

Julian Anderson: My key priorities revolve around advocacy and the promotion of high-quality design outcomes in Build to Rent (BTR) developments. A significant focus is on reviewing the apartment design guidelines and exploring opportunities for greater flexibility, ensuring BTR developments can better contribute to addressing Victoria’s housing supply needs.

New South Wales already provides more flexibility for BTR developments through SEPP 65, particularly in areas such as private open space, balconies, storage, and apartment mix. In Victoria, we hope to establish similar measures to improve the viability of these projects.

Given that BTR developments consistently offer a high standard of communal spaces, there is scope to examine whether some flexibility in design guidelines might allow communal areas to offset certain private open space requirements. In addition to policy advocacy, my role on the committee is to facilitate education and knowledge-sharing among industry professionals. 

By bringing together insights and expertise, we can ensure BTR continues to evolve as a valuable and sustainable part of the rental housing market.

How do you see the Build to Rent sector evolving in Victoria, and what role do you believe Bates Smart can play in shaping its future?

The BTR sector in Victoria is growing rapidly, and I anticipate that this momentum will continue, particularly in areas with strong transport links and existing infrastructure. Bates Smart has undertaken extensive research into global best practices, including study tours in the US and the UK, which have informed our approach to design.

In the US, BTR is a well-established asset class, and our 2018 study tour helped shape our designs for projects such as Home Southbank and Liv Munro at Queen Victoria Market. More recently, in 2023, we visited 23 BTR developments in the UK across London, Manchester, and Birmingham. A key observation was the strategic placement of BTR developments near train stations, capitalising on access to public transport and amenities. This aligns well with the Victorian Government’s plan to develop 50 new activity centres and significantly increase housing density in these locations.

At Bates Smart, our primary role is to champion high-quality and efficient design. BTR developments present an opportunity for greater modularity and prefabrication, which can reduce construction costs without compromising on design integrity. Standardising key elements such as kitchens and bathrooms allows for more efficient construction, ensuring investment is directed towards the areas that enhance the resident experience.

What challenges do you anticipate for Build to Rent developments in the coming years, and how can the industry work together to overcome them?

The biggest challenges facing the sector include rising construction costs, site availability, and policy constraints. Managing construction costs will require innovative solutions such as modular design and prefabrication, which not only reduce costs but also improve efficiency. The UK has seen significant success in this area, with large-scale prefabricated BTR developments by Greystar in places like Croydon, London demonstrating the benefits of a streamlined construction processes.

Site availability is another critical issue. With the government’s emphasis on developing activity centres, there is an opportunity for BTR developments to integrate more closely with public transport infrastructure. This will also help reduce reliance on private vehicles, leading to lower parking requirements and, in turn, reducing overall construction costs.

Regulatory frameworks must also evolve to provide greater certainty for investors and developers. Unlike Build to Sell developments, which typically require a high percentage of pre-sales before construction can commence, BTR projects can proceed without such constraints. This ability to deliver housing more rapidly is a key advantage that should be leveraged to address Victoria’s housing shortage.

Sustainability and community-focused design are becoming increasingly important. How can these principles be better integrated into Build to Rent projects?

Sustainability and community engagement are fundamental to the success of BTR developments. Unlike traditional rental models, BTR operators are heavily invested in ensuring high occupancy rates, which means fostering strong tenant relationships and creating spaces that encourage interaction.
Designing community-focused amenity spaces is therefore a priority.

 Operators have found that tenants who develop friendships within their buildings tend to stay longer, so considerable thought goes into the layout and functionality of communal areas. In the US, early BTR developments favoured podium-level amenities such as gyms and pools, along with rooftop lounges and dining spaces. However, our UK research highlighted a shift towards integrating communal spaces at ground level, where they can connect more effectively with external landscapes and existing urban environments. 

This approach is already being implemented in some of our projects, such as 50 Queens Road in Melbourne, with Aware Real Estate and Barings, where a large, landscaped ground floor area provides a natural extension of communal living spaces.

From a sustainability perspective, the most effective way to achieve long-term environmental benefits is to carefully consider the placement and orientation of buildings at the outset. 

Maximising access to sunlight, daylight, and natural ventilation can significantly enhance energy efficiency. Reducing embodied carbon through the use of modular construction techniques is another priority, alongside prefabrication methods that reduce material waste and improve construction timelines. 

Many projects are also integrating renewable energy solutions such as solar panels to further reduce operational energy consumption.

With your extensive experience in architecture and urban design, what innovative design strategies will define the next generation of Build to Rent developments?

Future BTR developments will focus on scalability, flexibility, and a more diverse range of apartment typologies. There is a growing trend towards larger, more efficiently designed buildings that maximise amenity while minimising construction costs. This includes optimising layouts with fewer lifts and stair cores, as well as designing larger, more efficient floor plates that improve liveability without compromising urban design quality.

The introduction of studio apartments has also been a major shift within the Australian BTR market. Historically, the Build to Sell sector has largely avoided studios due to financing constraints, but BTR has demonstrated a strong demand for this type of accommodation. 

Many of our current projects now include up to 20% studio apartments, reflecting the changing needs of renters. Looking ahead, there is potential for further innovation in this space, including micro-apartments and co-living arrangements, where shared facilities provide an alternative to traditional private dwellings.

Another area of innovation is the integration of co-working spaces within residential buildings. This was a concept we introduced early in our Australian BTR projects, drawing inspiration from successful models in the US and UK. 

Given the increase in remote and hybrid working arrangements, we expect to see an even greater emphasis on creating blended living and working environments that support flexible lifestyles.

Image: Julian Anderson, Bates Smart Director / supplied