Invest
How property investors are capitalising on a new supply boom
With the residential property markets in freefall, investors and property developers have turned their attention to the increasing number of international students going to Australian universities.

How property investors are capitalising on a new supply boom
With the residential property markets in freefall, investors and property developers have turned their attention to the increasing number of international students going to Australian universities.

With this, there has been a supply boom in the purpose-built student accommodation (PBSA) sector in recent years, with more commercial PBSA operators establishing their presence in major university cities.
CBRE research manager Joyce Tiong said institutional investors were tapping into strong student numbers and a slowdown in the residential market, leading to a greater supply of beds.
“The current low yields in the traditional commercial real estate sectors, along with the residential market moving firmly into a period of correction, has increasingly led institutional investors to look at allocating capital elsewhere,” Ms Tiong said.
Rosie Young, director of CBRE Hotels/Student Accommodation, commented: “Despite the Australian PBSA sector not being as mature or transparent as the more traditional sectors, stronger demand from major institutional investors is expected as they seek out alternative investments which will continue to support the growing PBSA sector.”
How large will the sector get?
Given Australia’s ranking as a preferred study destination for international students and the rapid growth of 4 per cent a year in the sector, investors are flocking to the market.
“Increased investor preference for student accommodation is set to be tested with the upcoming sales of Urbanest’s $2-billion portfolio and Atira’s $700-million portfolio,” said Ms Tiong.
“Taking into consideration the circa 17,000 beds currently under construction or with development approval, we expect the number of beds, both on and off campus, to grow from circa 65,000 to over 80,000 beds in the next five years – an increase of approximately 25 per cent,” said Ms Tiong.
This email address is being protected from spambots. You need JavaScript enabled to view it.
About the author

About the author


Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. ...Read more

Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more

Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more

Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more

Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more

Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more

Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more

Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. ...Read more

Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more

Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more

Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more

Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more

Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more

Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more

Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more