Invest
The new market property investors are targeting worldwide
An increasing student population and an undersupply of accommodation are creating a growing market of opportunity for property investors.
The new market property investors are targeting worldwide
An increasing student population and an undersupply of accommodation are creating a growing market of opportunity for property investors.
A new report released by commercial real estate firm Knight Frank has shown that there is a high and growing demand for student occupancy but an undersupply on average worldwide.
Ben Burston, Knight Frank partner and head of research and consulting, stated: “Demographic change, coupled with the rapid development of a middle class in emerging economies, as well as increases in state funding, have underpinned a rapid increase in student numbers globally over the last decade.
Local opportunities
In Australia, the purpose-built student accommodation market is in transition, with students’ demand outweighing the supply, said Mr Burston.
“Demand in Australia is rising due to a range of factors, including ambitious government enrollment targets, consistent growth in international student numbers and a significant increase in state-backed university funding,” he said.
“Student numbers in Australia have surged by 50 per cent over the past decade, and the Australian government is aiming for 40 per cent of 25 to 34-year-olds to hold a degree by 2025, up from the current rate of 27 per cent,” continued Mr Burston.
A further 25,000 new purpose-built student accommodation rooms have been built in the last four years, but there is still additional demand for housing.
“Around 8,290 new beds will be delivered this year, with Sydney, Melbourne, Brisbane and Adelaide accounting for 80 per cent of this new delivery, with the remaining 20 per cent distributed across Hobart, Geelong, Wollongong and Cairns.
“Despite some growth, demand is expected to outstrip new supply over the long term. A scarcity of developable land in close proximity to many Australian universities remains a barrier to increasing supply, with many institutions situated in urban locations.
Global opportunities
The Knight Frank Global Student Property 2019 report found that investors from the United States have been the primary source of global cross-border capital, spending $7.5 billion on PBSA over the past five years, but the balance of power was shifting with the outflow of capital from Asia-Pacific eclipsing that from both Europe and North America in two of the previous three years.
Investment from Asia Pacific into student property markets around the world has risen by 47 per cent in the last five years. In 2017 alone, this equated to $3.5 billion.
Asia Pacific is also a destination for inward investment, with Australia’s higher education in particular continuing to attract a larger share of the world’s internationally mobile students.
“Global investment into purpose-built student accommodation was a record US$16.3 billion in 2018, surpassing the previous high of $15.9 billion in 2017. Cross-border capital has accounted for approximately 40 per cent of this total investment over the last three years, compared to an average of 26 per cent across all real estate sectors,” said Mr Burston.
RELATED ARTICLES
About the author
About the author
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more
Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more
Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more
Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more
Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more
Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more
Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more
Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more
Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more
Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more
Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more
