The Student Accommodation Council has welcomed the government’s historic recognition in the Budget of the critical role purpose-built student accommodation sector (PBSA) plays in providing a first-class experience for international students in Australia. The focus on Australia’s PBSA housing is another feather in the cap for the expanding sector.
Australia’s consistently strong university rankings, proximity to the Asian market and quality of student life are key factors to the nation’s reputation as a top destination for students.
Following the downturn during the Covid pandemic, the country has seen a rebound in population and an uptick in student enrolments. However, The Student Accommodation Council warned against forcing universities to compete directly with the private market.
“The PBSA sector and the university sector need to work together to provide housing choice for international students, who are a critical part of Australia’s economy.”
“While we wait to see the proposed regulations, the industry is ready to work with the higher-education sector to deliver the student accommodation they need. This includes placing students into existing beds today and building new beds into the future.
“However, the government needs to be careful in how they implement these reforms. There is a lot of capital already invested and looking to invest in Australian PBSA – and we want universities to work with the existing private sector rather than being forced to compete.
“Private sector PBSA providers, developers and operators are the answer for universities concerned about a cap on their international student numbers. We look forward to working with the sector to provide solutions to their housing needs.
“The fastest way for universities to add PBSA stock is to partner with the private sector.
“Growing and deepening partnerships between universities and the private PBSA sector will ensure we can maintain Australia’s critical international student market.”
Torie Brown, Executive Director of the Student Accommodation Council
A report released by the Student Accommodation Council in April showed the current pipeline of new PBSA developments will not meet future needs – with the projected 7,770 new beds due by 2026 not enough to alleviate demand in the private rental market.
High property taxes
Difficulties faced by the PBSA sector include slow planning systems, high property taxes and clunky state-based legislation.
The Student Accommodation Council also calls on the government to be clear about how many of the forecast 260,000 migrants will be student visa holders. As Australia’s largest service export, international education plays a critical role in the contry’s economy and must be protected.
“The challenge facing Australia’s PBSA sector lies not in demand but in supply. The rebound in international student enrolments has exacerbated the demand-supply mismatch within the sector, further emphasising the urgency for new developments.
“The solutions for the supply shortage are complex, including elevated construction and labour costs, planning difficulties, limited land availability and high financing costs. Despite the projects underway in the development pipeline, they still fall short of the projected future demand.”
Helen Ye, JLL
