Australian Student Accommodation – Q1 2019: Savills Report
The Australian student accommodation sector is powering through a rapid development phase. A chapter in its evolution not so dissimilar to other emerging asset classes across global markets, such as build-to-rent in the UK or data centres across Southeast Asia. The expansion of the student accommodation sector is playing catchup in order to support demographic changes and the continued inflation, and growing mobility of, international and domestic students.
By the start of the first semester of 2019, there were 87,052 operational PBSA beds varying by quality, price, location and amenity across the eight Australian Greater Capital Cities. Since the 2018 Savills market report 10,850 new PBSA beds have entered the market. Our projections show there could be 114,755 operational beds by the end of 2022, a 32% uplift to today’s number. Peak delivery will be 2021 when an estimated 11,800 beds will enter the market, 57% to be completed across Melbourne …