Student Housing Crisis: CBRE Data Reveals Australia Lagging in Building New Accommodations
Table of Contents
- A new report by CBRE states that 8,000 new purpose-built student accommodation (PBSA) units will be delivered across Australia from 2023 to 2026.
- CBRE says this 7% increase in PBSA supply is inadequate to meet the growing demand as international student enrolments rebound post-COVID.
- The report notes that PBSA rental growth has been in the high teens over the past 5 years, showing strong investor interest.
- The Student Accommodation Council criticizes the modest growth in PBSA supply as insufficient to address the shortage.
- The Council calls for governments to facilitate more PBSA development through planning approvals, land tax relief, and land releases specifically for student housing.
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Despite this, Sameer Chopra, CBRE’s research chief, suggests these units won’t meet rising demand. He notes that, with the return of international students after COVID, student enrolments are closing in on the numbers seen before the pandemic.
Other global hubs, including Paris and London, provide more student accommodations. The issue worsens in Australia with a stubbornly low apartment vacancy rate in city centres.
Rosie Young, CBRE’s director overseeing student housing valuations, signals a slowdown in this sector as agents hold onto their properties. Yet, student housing remains a strong interest for investors. Rental rates show strong growth, especially for individual units, over the past 5 years.
The Student Accommodation Council voices concern in reaction to the report. Their perspective: the 7% increase in student housing isn’t enough. They’re pushing for government involvement to aid in more student housing developments. Solutions include more straightforward planning approvals, tax relief similar to new development projects, and land set aside expressly for student housing.
A recent CBRE report reveals that just 8,000 new student-specific apartments will be constructed in Australia between 2023 and 2026. This is a minor 7% uptick. Still, authorities point out that the modest growth in available accommodation won’t cater to the escalating needs. Especially as overseas enrollments revive post-pandemic. The Student Accommodation Council finds fault with the government for not championing further student residence developments to tackle the housing scarcity.