AUSTRALIAN PROPERTY INSIGHTS
CAMPUS QUARTER
SECTOR OVERVIEW
Sentiment has rebounded following pandemic era challenges. Occupancy has recovered to record highs, rental growth is strong and demand remains structurally underpinned. Investor interest has returned following a subdued 2024, characterised by capital markets challenges and policy risk.
With over 550,000 international students and a growing pool of mobile domestic students, Australia’s PBSA fundamentals are grounded in global education demand, liveability, and sustained housing need. Australia significantly lags more mature global markets in terms of provision rate and institutional depth, indicating a very promising runway for growth. An improving economic picture, bringing lower finance costs, alongside more policy clarity on international student numbers, will help unlock more investor capital. GLOBAL CONTEXT AND MATURITY COMPARISON Despite being one of the most popular destinations for international students, PBSA in Australia remains relatively underdeveloped. Fewer PBSA beds are offered, and a smaller proportion of students are housed in professionally managed stock, than peer countries. Most domestic students live at home or in private rentals, and international students compete for limited options. The PBSA sector is roughly a $20 billion market in Australia compared to around £90 billion ($184 billion) in the UK. Australia thus has the demand profile of a mature market, but the supply and institutional depth of an emerging one. That paints a very attractive picture for investors – particularly as Australian universities continue to attract international students.
CHART 1
STUDENT TO BED RATIO
12
1,200,000
10
1,000,000
8
800,000
6
600,000
4
400,000
2
200,000
0
-
US
UK Canada Australia
Number of Beds
Students per Bed
Source: Cushman & Wakefield Research
3
CUSHMAN & WAKEFIELD
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