Student housing doesn t meet demand

Student housing doesn’t meet demandThe supply of purpose-built student accommodation in Australia is not keeping pace with the rise in student numbers, particularly those from overseas, according to a new report from JLL.JLL’s Australian Student Accommodation Market Update for 2014 reveals the nation currently has less than one bedroom of purpose-built accommodation for every 10 students. The figure is based on current supply in all major markets, except for Canberra, which provides one bed for every five students. This compares to London, which has one bedroom per four students.The JLL report noted an increase in the provision of purpose-built student housing, but said it is not keeping pace with demand.Quoting figures from the Organisation for Economic Cooperation and Development (OECD), JLL said international student numbers will increase globally by 7 per cent per annum”approximately 760,000 international student enrolments in Australia by 2020.The majority of Australia’s international student population comes from Asia, with 29 per cent in 2013 being Chinese, 8.8 per cent Indian, and 4.9 per cent Korean.JLL said that, anecdotally, approximately 75 per cent of purpose-built housing by private sector operators is occupied by international students, and it anticipates demand for purpose-built student accommodation will increase in line with international student numbers.The company identified student accommodation as a growing asset class, noting numerous opportunities for the provision of purpose-built accommodation, and for domestic and international investors seeking a foothold in the Australian market.JLL estimates there is more than $1 billion of equity looking to invest in the Australian student accommodation market, with investors looking for investment opportunities both on and off campus, and on existing assets and development opportunities.A lack of available assets is limiting transaction volumes in Australia, according to the report, with only three major transactions in the past 12 months, totalling approximately $2 million.Find JLL’s report here