A report recently released by CBRE Australia, shows that the estimated increase of 8,000 rooms delivered by Australia’s Purpose Built Student Accommodation (PBSA) over the next three years will still unlikely be enough to meet the rapidly increasing demand for student housing.
According to the Accommodating the surge in students report, the causes for the ongoing lack of supply can be linked to challenges in specifically securing land for the development of student housing, as well as the overall inflation of building costs.
In response to the release of the report, the Student Accommodation Council has also expressed concern that there will not be enough student housing despite a projected 7 per cent increase in supply.
CBRE Pacific Head of Research Sameer Chopra said that the rapid recovery in international student enrolments since COVID combined with the lack of supply of private, inner-city rental properties will result in a supply-demand imbalance.
Median rents for student accommodation is also on the rise with a reported CAGR 5.5 per cent increase from $405 to $530 per week over 2018 to 2023 across Brisbane, Melbourne and Sydney markets.
Student Accommodation Council Acting Executive Director Adina Cirson said the report echoed the Council’s sentiments that not enough is being done to enable sufficient construction of purpose-built student accommodation (PBSA) to meet the demands in every state and territory.
“Our research shows that over 76,500 students in Australia are living in some 200 purpose-built student accommodation developments, most of which are full – with a third of beds leased to domestic students.
“That is tens of thousands of students who are not competing with renters in the private market, underscoring the significant role PBSA has to play in easing the crisis.
“The need to increase student housing, for both domestic and international students, has reached a critical stage,” said Cirson.
Cirson stated that all levels of government need to do more to get improve student housing supply and secure a sustainable development pipeline.
”PBSA is an enabler to the higher education sector – our biggest service export – and therefore makes a positive contribution to the broader economy. It has been estimated that 16 per cent of students who complete their studies in Australia stay on to work here, critically alleviating workforce shortages and helping to bring vibrancy to our cities.
“In 2019, around 300,000 international tourists came into Australia to visit an international student, contributing approximately $1 billion to the economy.
Cirson said that the council will continue to advocate at the federal, state and local government levels to ensure that Australia’s political leaders understand what needs to be done to ensure more housing for students, as well as how the PBSA could help ease market pressures.
