International students continue to flock to Australia: Savills Student Accomodation Q1 2019 Report

Purpose built student accomodation (PBSA) is being driven by the influx in international students, according to Savills Australia Student Accomodation Q1 2019 Report.

International students increased by 94,630 over the past five years.

There were 10,850 new PBSA beds enter the market in time for the 2019 academic year. Nationally there are now over 87,000 purpose built student accomodation beds.

Savills pipeline predicts there will be around 115,000 beds by 2020. 46% of the future pipeline is through Melbourne. Victoria's general population is set to close on New South Wales by 2022.

By 2022, the full-time international student to all bed ratio is projected to measure 3.75, significantly higher than more mature global markets such as the UK.

Compound annual growth in full time students across Australia’s Greater Capital Cities recorded 4.3% over the past five years, and 4.5% over the 10 year period. 

The growth in full-time students has been driven predominantly in Sydney, Melbourne, Darwin and Canberra.

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Paul Savitz, the director of student accomodation at Savills Australia said the expansion of the student accomodation sector is playing catch-up in order to support demographic changes

Savitz, who wrote the Australian Student Accomodation Q1 Report, added that by the start of the first semester of 2019 there were 87,052 PBSA beds varying by quality, price, location and amenity across the eight capitals.

“Our projections show there could be 114,755 operational beds by the end of 2022, a 32% uplift to today’s number," Savitz said.

"Peak delivery will be 2021 when an estimated 11,800 beds will enter the market, 57% to be completed across the Melbourne market.

Conal Newland, director of student accommodation at Savills Australia, said international student growth has been even stronger, recording a compound annual growth rate of 7.1% since 2012, and 5.7% over 10 years. 

“Between 2012 and 2017, Australia’s full time international student presence grew by 41%.," Newland said.

"With Melbourne and Sydney the premier destination for international students, growth has been significant across these two capital cities recording an annual increase of 8.7% (Melbourne) and 11.3% (Sydney) over the past five years” he said.