Campus Quarter

AUSTRALIAN PROPERTY INSIGHTS

CAMPUS QUARTER

OUTLOOK

POSITIVE LONG-TERM FUNDAMENTALS

RESILIENCE IN FOCUS The post pandemic period has highlighted the defensive characteristics of PBSA. Occupancy has rebounded ahead of expectations. Rents are at all-time highs. Capital is returning – not tentatively, but with a long-term view. And perhaps most importantly, the sector has proven it can weather policy turbulence, demand shocks, and construction delays without undermining core performance. Looking ahead, the key challenge for investors is not proving the value of the asset but gaining access. Australia’s PBSA sector is likely to remain tightly held, operationally defensive, and highly investable.

Core demand drivers – including growing international student mobility, domestic enrolment shifts, and rising urbanisation – remain intact and continue to reinforce a deep, stable renter base. At the same time, Australia’s broader rental market continues to face extreme pressure. Housing affordability constraints, low vacancy, and a shortage of rental stock in key university precincts are all pushing students toward PBSA as a secure, bundled, and predictable alternative. DEVELOPMENT PIPELINE RISKS High construction costs, lengthy planning approvals, and uncertainty around cost of capital have slowed project conversion across most major cities. As of early 2025, less than one-third of the national PBSA pipeline is actively under construction, and completions are unlikely to accelerate meaningfully before 2026. This picture should improve as macro tailwinds recede but supply will remain very constrained relative to demand.

CUSHMAN & WAKEFIELD