New Report Reveals Largest PSBA Pipeline Since 2020 As Developers Supersize Their Projects
Leading agency Savills Australia’s latest Student Accommodation 2024 Report has revealed the resilience of Australia’s Purpose-Built Student Accommodation (PBSA) sector, despite the uncertainty of potential tertiary enrolment caps and ongoing feasibility issues. Demand for student beds will remain elevated in the face of looming legislative changes, according to Savills, with a more positive economic environment buoying investor confidence.
The report reveals there are 16 PBSA projects under construction across Australia’s capitals - the highest number since the pandemic - signalling increased confidence amongst developers. Sydney will lead the charge with the delivery of 4,300 new beds over the next three years, followed by Brisbane with over 3,160 new beds for the 2027 academic year.
According to Savills, this signifies a massive shift in sentiment, with both Perth and Brisbane receiving their first new PBSA supply since 2022.
This burgeoning development pipeline is supported by robust rental growth. Savills’ Student Accommodation 2024 Report has revealed an uptick in rents across all major cities since 2022 - most notably in Perth, Brisbane and Sydney – coupled with strong occupancy rates.
“Globally the Student Accommodation sector is set to recover in 2025, with investment up 23% annually worldwide, driven by a more favourable macroeconomic backdrop. With major central banks pivoting on interest rates, the balance of risk is gradually shifting in favour of deploying capital,” said Conal Newland, Head of Operational Capital Markets at Savills Australia and New Zealand.