The Student Accommodation Council says it is concerned at a CBRE report, which has found that student accommodation demands remain high.
The report, titled Accommodating the growth in students, records a growth of seven percent of current room volume between 2023-2026 should be met by the allotted timeframe, but will be far short of the units required. Median rents sit at $530 per week compared to $406 per week before 2018 across Brisbane, Melbourne and Sydney, outlining the lack of supply.
Student Accommodation Council Acting Executive Director, Adina Cirson, says the report underlines that more needs to be done to create more purpose-built student accommodation (PBSA) nationwide.
“Amidst the widespread housing crisis, there is an acute shortage of dedicated student housing,” she says.
“We need all levels of government to do more to get student accommodation out of the ground and secure a sustainable development pipeline.
“Our research shows that over 76,500 students in Australia are living in some 200 purpose-built student accommodation developments, most of which are full - with a third of beds leased to domestic students. That is tens of thousands of students who are not competing with renters in the private market, underscoring the significant role PBSA has to play in easing the crisis.
Cirson says that state and federal governments must act swiftly to cater for an influx of students that require accommodation, namely international.
“The need to increase student housing, for both domestic and international students, has reached a critical stage.
“Governments have been receptive to build-to-rent (BTR) developments forming part of the housing mix, and it is essential that governments also see PBSA in a similar light.
“PBSA is a unique asset class, and governments need to provide clear planning approval pathways and consider extending the generous land tax and regulatory treatments that have been afforded BTR developments.
While land is currently being unlocked from the public sector for affordable housing development, Cirson believes that portions of this must be dedicated to PBSA.
“We also need to see more land release dedicated to development of student housing. Unlike BTR, PBSA is already a scaled, sophisticated sector and is able to respond to the current situation rapidly if these barriers are removed,” she says.
”PBSA is an enabler to the higher education sector – our biggest service export – and therefore makes a positive contribution to the broader economy. It has been estimated that 16 percent of students who complete their studies in Australia stay on to work here, critically alleviating workforce shortages and helping to bring vibrancy to our cities.
“We will be continuing to advocate at the federal, state/territory and local government levels to ensure our political leaders understand what needs to be done to get more housing for students, and how our sector can help ease market pressures.”
To read the CBRE report, click here.
Image: Gillies Hall Monash University
