Campus Quarter

AUSTRALIAN PROPERTY INSIGHTS

CAMPUS QUARTER

Cedar Pacific UniLodge. Kensington

NATIONAL PBSA SUPPLY AND DEMAND IMBALANCE CHART 9

PROVISION RATES TRAIL DEMAND Australia’s PBSA provision rates remain well below global benchmarks – both on a per-student and per-city basis. Across the country, there are around 3.6 international students per PBSA bed, and 8.5 total students per bed (including domestic enrolments). By contrast, markets like the UK have closer to one international student per bed. In Australia, the structural shortfall is most pronounced in Melbourne and Sydney where population growth, high international enrolments, and a lack of affordable private rental stock converge. Unlike the UK and US, Australian universities have typically focused on their core function of education rather than providing accommodation and have historically leant on the private sector to house students. As a result, a tight private rental market has compounded the under provision of student housing. Students are increasingly being priced out of private rentals or are struggling to secure leases amid competition from other demographics. Along with this, the desire for the living experience that PBSA can provide – community, amenity and well-being, helps lend to the sector’s appeal. Chart 9 shows the composition of the Australian student cohort relative to purpose built accommodation, illustrating the significant structural nature of the imbalance.

1400000

1200000

1000000

800000

600000

400000

200000

2024 Students

2024 Student Housing Beds - On/O campus & Pipeline

International

Rural

Interstate Domestic

Source: Cushman & Wakefield Research

CUSHMAN & WAKEFIELD