Report | Intelligent Investment
Pacific Student Accommodation Report 2025
Insights into a sector experiencing rising demand, constrained supply, and evolving investor appetite.
August 15, 2025 20 Minute Read
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Unlocking opportunity in the student accommodation sector.
The purpose-built student accommodation (PBSA) sector is experiencing a resurgence, driven by the return of international students and strong domestic demand.Our latest report reveals market trends, supply pipelines, demand imbalances, and investment insights that are driving growth across the purpose built student accommodation (PBSA) landscape.
Key Trends Shaping the Sector
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Demand Drivers
International student arrivals have rebounded strongly, with over 30,000 returning in 2023 alone. Domestic enrolments remain robust, and the demand for quality, well-located accommodation continues to grow. -
Supply Pipeline
Only 6% of students can access PBSA, leaving unmet demand of 10,000 beds in Melbourne and 25,000 beds in Sydney. CBRE estimate 28,000 beds of new supply (Australia-wide) over 2025-28. -
Investor Sentiment
PBSA is attracting renewed interest from institutional investors, drawn by stable occupancy rates and resilient rental growth. Yields have compressed, but long-term fundamentals remain attractive. -
Rental Trends
Median rents grew at CAGR 5.5% over 2018-2025 across Melbourne and Sydney, and are at a 13% premium to two-bed apartments in close proximity.
Melbourne and Sydney see robust rent growth and premium returns for PBSA investors, driven largely by acute under-supply.
Purpose Build Student Accommodation
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