Two SA Developers beat Australia on rental output

• Two SA property developers delivered 4,500+ rental apartments, more than Australia’s 4,349 multifamily units last year.
• Multifamily = one landlord owns/manages the entire building; tenants get professional management and consistency.
• Africrest and Divercity are scaling fast; tenants gain affordable, well-located units; investors gain predictable yield.

South Africa vs Australia: who’s building faster?

Australia delivered 4,349 new multifamily (build-to-rent) apartments last year (Knight Frank’s Horizons report). Over the same period, Africrest Properties (Johannesburg) and Divercity Property Group together delivered 4,500+ rental apartments in South Africa, outpacing Australia’s countrywide total with just two local developers.

What is multifamily and why it matters

‍Multifamily (Build-to-Rent) is a residential asset class where one professional owner holds the entire building and leases all units. Apartments are not sold off.

The model - mature in the US and rapidly expanding in the UK, Europe and Australia offers:

• Professional, on-site management and consistent service levels
• Amenity-rich living in work-adjacent locations
• Stable, predictable cashflows that attract institutional investors

South Africa’s adoption is accelerating, driven by urban densification, rental affordability pressures, and the need for reliable management at scale.

Property Developers to watch

Africrest Properties

‍Operating at the forefront of SA multifamily, Africrest is focused on middle-income rental housing in major job nodes like Sandton and Bryanston.

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“Africrest’s aggressive development schedule is not just about quantity; it’s a strategic response to a critical market need… focusing on much-needed middle-income housing for rental within major work nodes,” says Greg Blend of Africrest.

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Divercity Property Group

‍A leading developer-landlord expanding South Africa’s rental landscape with large-scale, well-located projects such as Barlow Park in Sandton.

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“We are in an exciting time in South Africa where multifamily is becoming established as an institutionally invested asset class, with growing investor interest and appetite,” says Carel Kleynhans, CEO of Divercity.

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The multifamily impact in South Africa

• Supply at scale: New, purpose-built stock adds thousands of apartments annually.
• Better locations: Projects cluster near employment hubs and transport, cutting commute times and costs.
• Quality & service: Centralised ownership enables professional maintenance, security, and community amenities.
• Investor appeal: Long-term leases and operational efficiencies create defensive, income-driven returns.
• City-making: Supports inner-city renewal and densification goals.

Way forward

• Pipeline growth: Africrest targets 10,000+ apartments within around 18 months; Divercity indicates 2,000+ units per year and sees ample runway.
• Institutionalisation: More pension funds and asset managers are evaluating build-to-rent allocations.
• Partnerships: Collaboration with cities, transport authorities and employers can unlock well-located land and infrastructure.
• Execution focus: Priorities include operational excellence, energy and water resilience, and affordability to sustain absorption.

Bottom line

‍South Africa’s multifamily engine is revving, led by Africrest and Divercity and it’s already outbuilding Australia’s annual rental deliveries.

For residents, that means better-managed, well-located homes; for investors, a scalable, yield-stable asset class that’s quickly moving mainstream.

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