The number of student accommodation beds in Australia has nearly doubled over the past decade, driven largely by a significant shift towards private purpose-built student accommodation (PBSA), according to new research released.
The Urbis Student Accommodation Benchmarks, developed in collaboration with the Student Accommodation Council (SAC), indicate that there are currently 132,700 student accommodation beds across the nation, with 53 per cent owned or managed by the private PBSA sector.
This marks a remarkable 90 per cent growth from the number of beds available 10 years ago.
Victoria leads the country with 43,982 beds, followed by New South Wales with 34,069 beds.
Other states contributing to the overall supply include Queensland (23,353 beds), the Australian Capital Territory (10,226 beds), and South Australia (9,133 beds).
SAC Executive Director Torie Brown highlighted that the increase in PBSA has coincided with a rise in international student enrolments.
“International students make up just 6 per cent of the rental market nationwide,” she noted.
Brown highlighted that PBSA not only provides dedicated housing for students but also alleviates pressure on the broader rental market, playing a crucial role in supporting Australia’s education system.
The report also reveals a robust supply pipeline of approximately 29,500 beds, primarily concentrated on Australia’s East Coast.
New South Wales is experiencing the highest level of activity due to an undersupply in recent years. Currently, about 7,400 beds are under construction, while an additional 14,900 have been approved for development, and nearly 7,200 beds are awaiting approval.
Sydney is projected to account for 28 per cent of the proposed new supply with around 8,300 proposed beds, closely followed by Brisbane at 22 per cent with 6,350 proposed beds, and Melbourne at 20 per cent with 5,850 proposed beds.
Urbis Director Clinton Ostwald noted that existing supply is heavily concentrated in major cities.
“Melbourne and Brisbane have seen significant development over the past decade due to site availability and government incentives,” he stated.
In contrast, Sydney faces challenges in securing sites within the inner city.
Brown pointed out that while there is growing interest in investment within the sector, it is essential to treat PBSA as a priority asset class to boost investment further.
She called for measures such as reducing burdensome taxes on international investors, streamlining planning processes, and addressing restrictive tenancy regulations to expand the accommodation pipeline.
The ACT currently boasts the most well-supplied capital city market with a benchmark of 2.9 total enrolments per bed, bolstered by a high percentage of interstate domestic and international students.
Conversely, New South Wales and Western Australia have lower relative levels of supply compared to other major markets.
As Australia continues to attract international students — whose numbers reached 701,262 as of May 2024—the demand for purpose-built student accommodation is expected to remain strong.
The evolving landscape presents both challenges and opportunities for stakeholders in the education and housing sectors.
