In a testament to the strong demand for student accommodation in Melbourne's education hubs, a student accommodation facility located at 32-34 Kangerong Road, Box Hill, has been successfully sold for $6 million. The property, which features 46 rooms, was acquired by a local private investor eager to capitalise the growing influx of international students.
The transaction, facilitated by Benson Zhou, Julian Heatherich, James Latos, and Tanya Su of Savills Australia and New Zealand, highlights the robust interest in Purpose-Built Student Accommodation (PBSA) and other such assets. The facility, generating approximately $44,000 in monthly revenue, equates to a sale price of $130,434 per room.
"The recent surge in student arrivals and net student migration has reached unprecedented levels," said Benson Zhou, Head of Asia Markets at Savills Australia and New Zealand.
"This strategic purchase reflects the investor's medium to long-term view, recognising the sustained demand for quality student accommodation it is a strategic purchase under replacement value."