Our 2018 market update report provides an overview of the key drivers and market activity in the emerging student accommodation asset class over the past 12 months.
Some key takeaways include:
- International student visa numbers are continuing to rise rapidly at Australian universities, with double-digit growth
- The Australian PBSA sector remains in a predominately development-focused phase, with limited transactions of operational property
- Brisbane is showing signs of an oversupply of more expensive accommodation options; demand remains robust in the other capital cities
The underlying dynamics of the Australian higher education market is continuing to support increasing development into new PBSA, with the international student population continuing to increase in both universities and other education sectors.
The first three quarters of 2018 have been highlighted by a continued increase in the pipeline of new PBSA developments, with a strong focus on Melbourne and to a lesser extent Adelaide (driven in part by the availability of development opportunities).
A number of established developers/operators have also looked to raise additional equity, including Scape, GSA, Cedar Pacific and Wee Hur. Successful completion of these capital-raising exercises is expected to provide significantly more liquidity in the sector moving towards 2019.
To find out more about key drivers, market activity and latest student housing trends, download the full report below.