AUSTRALIAN PROPERTY INSIGHTS
CAMPUS QUARTER
CHART 11
PBSA RENTS (AVERAGE ALL ROOMS TYPES)
$1,000
$800
$600
$400
$200
$-
Sydney
Melbourne
Brisbane
2023
2024 2025 YTD
Source: Cushman & Wakefield Research
RENTAL GROWTH MOMENTUM PBSA rents have rebounded strongly post-COVID and continue to trend upward. Studio rents jumped 20% from 2022 to 2023, and although growth has moderated more recently, benchmarks remain well above pre-COVID levels across all capital cities. Operators have generally adopted a measured approach to rent increases in recent intakes amid political sensitivity around affordability. Underlying fundamentals – tight vacancy, limited competition, and a strong demand base – continue to support sustained pricing power. The sector’s six-to-twelve-month leasing model also enables operators to reprice rents more frequently than traditional residential assets; this ability to mark rents to market is a source of income resilience.
AFFORDABILITY ADVANTAGE VS PRIVATE RENTALS Although PBSA headline rents can appear high, they compare favourably to private rental options when bundled living costs are factored in. PBSA typically includes; furniture, internet, electricity, water, security, students services and eliminates the need to enter competitive private rental application processes. All-in rental costs for private studio apartments are approximately 33% higher than PBSA in Sydney, 17% higher in Melbourne and 13% higher in Brisbane. These differences are particularly pronounced in inner-city precincts where students need to compete for private rentals with young professionals. Furthermore, PBSA offers access to on-site support, community programming, and an accommodation model designed around student schedules, additional features essential for student tenants.
CHART 12
PBSA VS PRIVATE WEEKLY RENTS
$1,000 $1,200
$- $200 $400 $600 $800
Sydney
Melbourne
Brisbane
Rent
Gym Furnishing Utilities Internet
Source: Cushman & Wakefield Research
12
CUSHMAN & WAKEFIELD
Powered by FlippingBook