The purpose-built student accommodation (PBSA) sector faces a period of uncertainty and transformation, with challenges related to delivering much needed new accommodation, and regulatory changes.
Threat of enrolment caps knocked investor confidence impacting on transactional activity; however, we anticipate that liquidity will return in 2025, as fresh new capital allocations emerge.
The feasibility of delivering student accommodation remains difficult due to high interest rates, increased construction costs, rising operating expenses, and rental prices moderating after a recent surge.
Despite construction difficulties, the Student Accommodation sector remains resilient - developer confidence continues to rise, with 16 PBSA projects currently under construction across the capital cities.