More than 11,000 student-specific beds are currently under construction in Australia, as the industry looks to ease the pressure on the private rental market.
The latest Urbis Student Accommodation Benchmarks report show Australia’s student accommodation development pipeline has grown by 5605 beds since Semester One last year, bringing the total pipeline of student-only beds to 35,605.
The report, created in partnership with the Student Accommodation Council, found ongoing growth in student housing with 11,102 beds currently under construction.
Student Accommodation Council Executive Director Torie Brown said the private sector remained the driving force in student housing development, accounting for 9492 of the beds under construction.
Ms Brown said there were a further 14,938 beds approved for development, with 9565 waiting for development approval across the country.
She said Melbourne held the largest share of beds in the pipeline with 8875, followed by Brisbane at 7118 beds and Sydney at 6849 beds.
“Investor confidence is strong despite debates around student migration and visa reforms giving overseas capital pause last year.
“The need for more dedicated purpose-built student accommodation (PBSA) is clear, and the investor fundamentals in Australia are strong.”
Ms Brown said both sides of politics had flagged plans to reduce the impact of international students in cities.
“We maintain that the easiest way to increase housing for students and to reduce their demand on the private rental market is to work with the sector to increase PBSA development.
“The private sector continues to be the engine room for new student accommodation developments, delivering critical beds and reducing pressure on the private rental market.”
She said the bulk of developments would reach completion in 2027.
“Expedited planning and addressing restrictive tenancy regulations would supercharge this timeline and bring beds to fruition quicker.”
