Campus Quarter

AUSTRALIAN PROPERTY INSIGHTS

CAMPUS QUARTER

Cedar Pacific UniLodge. Kensington

KEY TAKEAWAYS

Record-high occupancy and rent growth

Supply will improve but challenges remain

Provision rates remain structurally low Australia has 3.4 international students per bed and 8.7 total students per bed; a much lower provision rate than global benchmarks. This underscores a significant runway for growth.

Most stabilised assets are operating at 95-100% occupancy, rents have seen double digit growth since 2022 and lease up periods are shortening with booking windows opening earlier. Constrained supply will keep upwards pressure on rents.

There are just over 10,000 beds under construction nationally. Improving cost of finance and economic outlook, along with stabilising construction costs should help more projects move from DA stage to construction.

Investor appetite returning, but stock is tightly held

Policy reforms have largely spared the core PBSA cohort Despite headline noise, most new visa measures have targeted sub-university segments, with full-time university students — PBSA’s key tenant base — largely unaffected.

ESG in focus Accommodation that has a strong student well-being offer and environmental performance is increasingly important for renters. Strong sustainability credentials can increasingly help unlock funding.

Capital is re-engaging, particularly via platform plays and forward-funding deals, as stabilised opportunities remain scarce and very sought after. Global capital is increasingly targeting Living sectors and growing transactional evidence and opportunity for scale will help activity.

CUSHMAN & WAKEFIELD