The number of student accommodation beds has almost doubled over the last decade, with the growth primarily driven by the private purpose-built student accommodation (PBSA) sector, a new study has revealed.

The Urbis Student Accommodation Benchmarks, created in partnership with the Student Accommodation Council, shows there are currently 132,700 student accommodation beds in Australia, over half (53 per cent) of which are owned or managed by the private PBSA sector. This is a 90 per cent growth on the number of beds a decade ago.

Victoria (43,982 beds) and New South Wales (34,069 beds) have the lion’s share of the existing supply, followed by Queensland (23,353), ACT (10,226) and South Australia (9,133).

The rise in the supply of purpose-built student accommodation corresponded with the increase in international students, observed Student Accommodation Council executive director Torie Brown.

“International students make up just six per cent of the rental market nationwide,” Brown said.

“Purpose-built student accommodation offers dedicated housing for students, eases demand on the wider rental market, and plays a crucial role in supporting our education system.

“We have seen a growing interest in investment into the sector, but treating PBSA as a priority asset class is key to turbocharging investment. Reducing burdensome international investor taxes, streamlining slow planning processes and addressing restrictive tenancy regulations would expand the pipeline,” she added.

In terms of the supply pipeline, around 29,500 beds – primarily focussed on the East Coast of Australia – are in various stages of development, with NSW seeing the highest level of activity.

Sydney accounts for the largest share (28 per cent) of proposed supply with around 8,300 beds, closely followed by Brisbane (22 per cent) with 6,350 beds, and Melbourne (20 per cent) with 5,850 beds.

Urbis director Clinton Ostwald said the existing supply is concentrated in the three big cities.

“Melbourne and Brisbane have a higher supply of existing beds due to significant development over the past decade, driven by site availability and government incentives,” Ostwald said.

“In contrast, Sydney currently faces undersupply due to difficulties securing Inner Sydney sites, prompting focus on Sydney and the Anzac Parade Corridor.

“Perth has also seen strong growth in international student enrolments, which has outpaced new supply in the market, with the CBD’s first major university campus set to open its doors in 2026.”

ACT is the most well-supplied capital city market with a benchmark supply of 2.9 total enrolments per bed, supported by a high share of interstate domestic and international students. Queensland (6.6), South Australia (6.2) and Victoria (5.9) align more closely to the national benchmark of 6.5 students per bed, with New South Wales (7.7) and Western Australia (9.9) having the lowest relative level of supply.

Future student accommodation supply by region

Future student accommodation supply by region

Image: Gillies Hall at Macquarie University.

Branko Miletic

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