Brisbane’s student accommodation pipeline is the largest in Australia as developers eye a shortfall in the market

JLL’s director of student accommodation Conal Newland said with international student numbers increasing Brisbane is working hard to fill the development gap.

“Brisbane has seen the biggest increase in student housing, which is being supported by the Brisbane City Council who have been both proactive in the marketing of student accommodation and also the promotion of student accommodation within the planning system,” he said.

“If completed, this new wave of development will establish the CBD and South Bank as two student accommodation destinations and is expected to consolidate student focused amenities in these areas.”

However, according to the report only 9 per cent of beds were under construction, 16 per cent have a Development Application, leaving 75 per cent speculative.

Two of the largest mooted student accommodation projects are 1300 beds by the University of Queensland and the Singapore-listed Wee Hur Holdings’ 1600 beds on a 1.9ha site on Logan Rd, Buranda.

Mr Newland said the market was reacting to an undersupply of purpose student accommodation and international companies are seeing opportunities.

This year Government of Singapore Investment Corporation took a large stake in Iglu which is building a student accommodation tower in Mary St while British-based Scape Student Living has bought a prime development site on Vulture St in South Bank.

“The investment fundamentals of high occupancy rates and good rental growth is making student accommodation as an investment very attractive,” he said.

“We are seeing global investors move into the Australian market. These global institutional investors with experience in student accommodation are coming into the Australian market.

“What we will see in the next two. three, four years is a continual increase in the student accommodation pipeline.”

Source: Courier Mail, Chris Herde, June 26^th 2015