Sydney and Melbourne universities are trying to hold onto their position in the top 10 international student cities as new visa changes are expected to bolster industry and inner city rental markets.

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Hopes are high student visa changes will bolster flagging inner-city rents and top up workforces as Australian capitals figure among the most popular places in the world to study.</p><p></p><p></p><p>Prime Minister Scott Morrison announced a series of strategies this week to attract 150,000 students back to the country as quickly as possible, including waiving visa application fees and relaxing work limitations.</p><p></p><p>The incentives were made to boost critical work shortages across the country and would also support hard-hit inner city rental markets and student accommodation providers.</p><p></p><p>This came as Melbourne ranked sixth and Sydney eighth in the 2022 QS Best Student Cities index, the first time the 164 eligible cities had been rated since the pandemic.</p><p></p><p>Brisbane ranked 29th on the list while Adelaide and Perth were equal 35th, Canberra 37th and the Gold Coast 89th.</p><p></p><p><strong>Best student cities in 2022</strong></p><p></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><table><thead><tr><th>2022 Rank</th><th>City</th><th>Country</th><th>2019 Rank</th></tr></thead><tbody><tr><th>1</th><th>London</th><th>United Kingdom</th><th>1</th></tr><tr><th>2</th><th>Munich</th><th>Germany</th><th>4</th></tr><tr><th>3</th><th>Seoul</th><th>South Korea</th><th>10</th></tr><tr><th>3</th><th>Tokyo</th><th>Japan</th><th>2</th></tr><tr><th>5 </th><th>Berlin</th><th>Germany</th><th>5</th></tr><tr><th>6</th><th>Melbourne</th><th>Australia</th><th>3</th></tr><tr><th>7</th><th>Zurich </th><th>Switzerland</th><th>8</th></tr><tr><th>8</th><th>Sydney</th><th>Australia</th><th>9</th></tr><tr><th>9</th><th>Boston</th><th>United States</th><th>12</th></tr><tr><th>9</th><th>Montreal</th><th>Canada</th><th>6</th></tr></tbody></table></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><sup><sub>^Source: QS Best Student Cities, QS Top Universities</sub></sup></p><p>Although the new ranking was positive news for national universities, <a href="https://www.theurbandeveloper.com/articles/signs-life-returning-to-inner-city-rental-sectors">the inner-city rental market has already suffered a big blow</a>—rents fell between 8 to 20 per cent in inner Melbourne.</p><p></p><p>Sydney’s inner city rent also dropped, around 3.1 per cent between March 2020 and October 2021, according to Corelogic.</p><p></p><p>Meanwhile, the Savills Australian Student Accommodation 2021 report showed that in early December operators had 50 per cent booking rates, a significant increase since border relaxation.</p><p></p><p>Savills Australia operational capital markets director Paul Savits said 2021 was an extremely challenging year but there was optimism immediately prior to the Omicron wave.</p><p></p><p>“As rental markets continue to tighten, and become more expensive overall than pre-Covid, alongside the historic undersupply of student accommodation, Savills expects the prompt recovery of purpose built student accommodation occupancy and rents,” Savits said.</p><p></p><p>“The residential rental markets in several capital cities have bounced back from a period of softness in 2020 with decreasing vacancy rates and increasing rental levels.</p><p></p><p>“Lower supply levels due to owner occupiers buying apartments and limited completions of new apartments has led to constraints in the market.</p><p></p><p>“This trend will continue into 2022 and will be exacerbated by increasing levels of demand from students and non-students for rental accommodation once the international border opens.”</p><p></p><p>The prime minister said students would have eight weeks from January 19 to enter Australia and take advantage of the visa application fee waiver.</p><p></p><p>“There are around 150,000 students who have visas who we are encouraging to come back to be there for the start of their university or college year, and that is a thank you to them for coming back and continuing to choose Australia,” Morrison said.</p><p></p><p>“But we also want them to come here and be able to be filling some of these critical workforce shortages, particularly those who are working and being trained in health care, aged care, those types of sectors.”</p></div></div></div></div></div>

Sydney and Melbourne universities are trying to hold onto their position in the  top 10 international student cities as new visa changes...

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Argo Group has lodged plans for a nine-storey student accommodation building opposite the Australian Catholic University in Fitzroy.</p><p>The 52-room accommodation tower would also include a communal kitchen, co-working spaces and a rooftop garden.</p><p>Architecture firm Hassell said it had consulted with proposed student accommodation operator Iglu to ensure the $8-million offering meets market expectations. </p><p>While the site at 133 Victoria Parade is not heritage-listed, town planners Human Habitats said the design was sensitive to the heritage of the area, notably the adjacent terraced houses. </p><p>“Built form takes cues from its former heritage building and provides a two-storey street wall to match in with the scale of the terraced houses to the east,” the town planning report said.</p><p>“The subject site is well positioned to provide additional housing, noting its proximity to significant Melbourne institutions such as the Australian Catholic University, St Vincent’s Hospital and Epworth Freemasons.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/90489b1a-4105-4679-88ec-534500c4c7e2.png" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ The proposed 9-storey student accommodation tower is positioned close to public transport and opposite the Australian Catholic University. Images: Hassell</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>The building features a two-storey podium with lighter colours as the tower gets higher to minimise “visual bulk” and transition into taller developments in the area. </p><p>“We have seen a recent expansion of student accommodation market which is seeking premium student accommodation rooms, with high amenity communal spaces, which this proposal seeks to respond to.</p><p>“Through the efficient use of space the proposal is able to offer high quality communal areas that will encourage residents into these communal areas and create a sense of community within the development.”</p><p>The City of Melbourne recently <a href="https://www.theurbandeveloper.com/articles/melbourne-pushes-for-return-of-international-students">revealed almost 40 per cent of residents in the CBD</a> used to be international students.</p><p>Lord Mayor Sally Capp has joined a chorus of people lobbying for the return of international students to kickstart the city&#x27;s recovery from Covid-19. </p><p>The Human Habitats report acknowledged that building heights were in excess of planning overlays but said they “anticipated that this section of Victoria Parade will experience significant change in the coming years”.</p><p>Hassell’s design report said they had created a future-proofed student accommodation model beyond the traditional “rack and stack” boarding house model.</p><p>“The contemporary student demands a vibrant community of residents that not only share living space within the building, but also share in the amenity in connecting more broadly with the surrounding neighbourhood,” the report stated.</p><p>“The proposal presents an innovative future-proofed student accommodation model on the site, as well as responding to the specific site on the corner of the broad boulevard of Victoria Parade and the more intimate Napier Street.”</p><p>Student rooms feature a bed, robe, built-in desk, kitchenette and bathroom as well as a winter garden.</p><p>The country’s biggest provider of accommodation for university students, Scape, is pressing ahead with 17 new purpose-built student accommodation buildings, despite its portfolio of rooms <a href="https://www.theurbandeveloper.com/articles/scape-purpose-built-student-accommodation-sector">sitting at just 25 per cent occupancy</a>.</p></div></div></div></div></div>

Argo Group has lodged plans for a nine-storey student accommodation building bucking the traditional ‘wrack and stack’ model... 

City of Melbourne council reveals almost 40 per cent of residents in the CBD and Carlton used to be international students in its push for their return... 

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Lockdowns and the desire to live regionally are not the only reason Melbourne’s metropolitan market has been so sluggish, with council revealing that almost 40 per cent of residents in the CBD used to be international students.</p><p>Lord mayor Sally Capp said the return of international students was critical for the city’s recovery from Covid-19.</p><p>“Prior to the pandemic, international students contributed $13.7 billion a year to Victoria’s economy and supported nearly 80,000 jobs, so we know their return will benefit our economic recovery,” Capp said.</p><p>“All levels of government should be working together with the sector to reboot international education, and planning for a substantial return of students by the start of 2022, or as soon as Australia reopens its border.”</p><p>Council discussed the return of international students at its meeting this week and outlined its plans to advocate to the federal government for their return nationally and request joint advocacy with the Council of Capital City Lord Mayors.</p><p></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Proportion of international students in Melbourne</strong></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><table><thead><tr><th>Location</th><th>Percentage of residents pre-pandemic</th></tr></thead><tbody><tr><th>Carlton</th><th>39%</th></tr><tr><th>CBD</th><th>38%</th></tr><tr><th>Southbank</th><th>15%</th></tr><tr><th>Docklands</th><th>14%</th></tr></tbody></table></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><sup><sub>^Source: Report to Future Melbourne Committee.</sub></sup><br></p><p>The Melbourne apartment <a href="https://www.theurbandeveloper.com/articles/australian-house-prices-increase-2000-per-week">market was falling</a> behind the rest of the country in prices, up just 0.5 per cent in August, 1.6 per cent in the quarter and 6.6 per cent in the year, in Corelogic data, compared to Sydney where prices increased 11.5 per cent in a year.</p><p>Meanwhile rent was one of the <a href="https://www.theurbandeveloper.com/articles/melbourne-housing-market-update">cheapest in the country</a>, and rental vacancy was the highest in the country at 3.8 per cent according to Domain and peaked at 6.6 per cent in the CBD.</p><p>For landlords who rely on international students, <a href="https://www.theurbandeveloper.com/articles/melbournes-foreign-student-landlords-5k-out-of-pocket">this equates to</a> $5000 a year while student accommodation providers in Melbourne were the <a href="https://www.theurbandeveloper.com/articles/melbourne-apartment-sector-undersupply">hardest hit</a> of the country.</p><p>Education and innovation portfolio lead Davydd Griffiths said  wanted to pursue initiatives to strengthen the city’s brand and get students back. </p><p>“In 2019, more than 150,000 international students from 170 countries lived in Melbourne, making it one of the world’s best student cities,” Griffiths said.</p><p>“We must protect Melbourne’s reputation as a global education hub and pave the way for international students to return as soon as it’s safe to do so.”</p><p>The state government was planning to restrictions will drop once more people got vaccinated and the premier was expected to announce home quarantine for people coming from NSW soon.</p><p>The impact of vaccinations on international arrivals was yet to be determined with Qantas executives <a href="https://www.theurbandeveloper.com/articles/qantas-reveals-roadmap-to-migration">eyeing mid-December</a> for the reopening of international borders.</p></div></div></div></div></div>

City of Melbourne council reveals almost 40 per cent of residents in the CBD and Carlton used to be international students...

Student accommodation developer Wee Hur's  $400-million plans in Brisbane for stage two of the Buranda transit-orientated development

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Student accommodation developer Wee Hur Holdings is pushing ahead with $400-million plans in Brisbane including an aged care tower.</p><p>Stage two of the Buranda transit-orientated development included a 28-storey apartment tower, 26-storey student tower, seven-storey aged care facility and commercial building near the Princess Alexandra Hospital.</p><p>The Singapore-listed company purchased the approved three-stage Buranda transit-orientated development in 2014, opening the first stage in 2019 for a 1578-bed student accommodation facility.</p><p>The 1.94-hectare site is made up of 45 land parcels next to the busway, train station and highway at 1 Gillingham Street, Woolloongabba.</p><p>The four-tower plans designed by Woods Bagot, “Park Central” have 758-beds for student accommodation each with its own bathroom along with 290 apartments and 130-beds in the aged care tower.</p><p>There would also be a basketball court, rooftop decks, two swimming pools, co-share offices, gym facilities, an elevated podium and retail plaza linking the bus and rail stations.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/c8af073a-95b9-4a6c-813d-935b259fb893.jpg" width="801"/></picture><div><span style="align-content:center;opacity:0.8">▲ The three staged Buranda transit-orientated development by student accommodation giant Wee Hur. </span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Wee Hur senior development manager Peter Scott said this development was part of the company’s strategy to further investments in Australia.</p><p>“Our product has evolved, our core business up until this point has been the development of student accommodation,” Scott said.</p><p>“You can’t just smash in 100 per cent residential accommodation, so we think we’ve found a good mix.</p><p>“There’s lots of synergies between student accommodation and aged care, that’s been an interesting little outcome.</p><p>“So we will be bringing in a joint venture partner and they will just take that out as a whole, we are not going to operate that, it’s not our core business.”</p><p>The student accommodation hit hard by the pandemic with beds sitting empty due to border closures however developers in this sector were <a href="https://www.theurbandeveloper.com/articles/scape-purpose-built-student-accommodation-sector">moving ahead</a>.</p><p>The senior development manager said the project had a positive outlook in the medium- to long term.</p><p>“Australia is very well placed to bounce back, the issue is students can’t get here, not they don’t want to be here,” Scott said.</p><p>“These are trying times and I think out of all industries, we’ve probably been up there as those who are suffering the most.</p><p>“We’re active in the market and are building and developing, we’re actually quite lucky to be in the development stage of our portfolio.”</p><p>Wee Hur has $1 billion in investment in Australia with sites secured in Brisbane, Sydney, Melbourne, Canberra and Adelaide for over 6,000 beds.</p><p>Construction on the stage two of the Buranda project is anticipated to start in 2022 and be completed in 2025.</p></div></div></div></div></div>

The travel bubble list expands as renters from Singapore, Japan and Vietnam are needed to boost the inner-city rental market and student accommodation sectors

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>There are calls for more international travel routes to reopen as the New Zealand <a href="https://theurbandeveloper.com/articles/nz-tourism-accommodation-sector-trans-tasman-travel-bubble">bubble </a>is lauded as the starting point for a return to normal for the inner-city rental market.</p><p>The federal government is already looking at Singapore as the next country on its travel bubble list, followed by Japan, Vietnam and South Korea. </p><p>This could also open travel for Australia’s largest international student population, that in China, as Singapore and Hong Kong will open their borders to that nation on May 26. </p><p>Qantas is also pushing for more Pacific Islands to be added to Australia&#x27;s list.</p><p>Any increase in migration could boost the rental market, which has been significantly affected in Sydney and Melbourne.Both cities are <a href="https://theurbandeveloper.com/articles/rental-market-rates-rise-fastest-pace-sydney-melbourne-rents-down">lagging</a> behind the rest of the country for rental growth, according to Corelogic.</p><p>Rain &amp; Horne has reported that weekly rents for inner Melbourne suburbs, close to the University of Melbourne and RMIT, are down by as much as 30 per cent since the flow of international students stopped. </p><p><strong>Pre-Covid population by country of birth in Australia</strong></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><table><thead><tr><th>Country of birth</th><th>Number of people</th><th>Percentage</th><th>Rank</th></tr></thead><tbody><tr><th>Australia</th><th>18,043,000</th><th>70.2%</th><th>1</th></tr><tr><th>England</th><th>980,000</th><th>3.8%</th><th>2</th></tr><tr><th>India</th><th>721,000</th><th>2.8%</th><th>3</th></tr><tr><th>China (excludes SARs and Taiwan)</th><th>651,000</th><th>2.5%</th><th>4</th></tr><tr><th>New Zealand</th><th>565,000</th><th>2.2%</th><th>5</th></tr><tr><th>Philippines</th><th>310,000</th><th>1.2%</th><th>6</th></tr><tr><th>Vietnam</th><th>270,000</th><th>1.1%</th><th>7</th></tr><tr><th>All overseas born</th><th>7,654,000</th><th>29.8%</th><th>-</th></tr><tr><th>Total population</th><th>25,697,000</th><th>100%</th><th>-</th></tr></tbody></table></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><sup><sub>^Source: ABS at 30 June 2020</sub></sup></p><p>Meanwhile, Australia’s largest student accommodation provider Scape has applied to temporarily <a href="https://theurbandeveloper.com/articles/scape-opts-for-student-accommodation-options">repurpose </a>its existing assets for the use of essential workers and travellers.</p><p>But the bid for international students, migrants and travellers is far from lost.</p><p>NSW recently put out a tender to begin a new international student accommodation quarantine program based in the Sydney CBD or its fringe.</p><p>“International education is our second largest export, generating $14.6 billion in exports annually before the pandemic and supporting nearly 100,000 jobs in NSW,” the expression of interest eTender read. </p><p>“We estimate in 2021 we have already lost a third of our international student base.”</p><p>The tender by NSW Treasury, which closed mid-April, also urged providers who did not meet the mandatory criteria to submit an application through the unsolicited proposals scheme.</p><p>Raine &amp; Horne national manager Maria Milillo said the introduction of the New Zealand travel bubble and future bubbles was exciting news for landlords.</p><p>“It’s still a day-by-day proposition for travel to New Zealand, however, the bubble sets the stage for more robust inner-city rental markets longer term, particularly as international students begin to return,” Milillo said.</p><p>“There are particular rental pockets around the country that the closure of international borders has impacted severely.</p><p>“From the thousands of young travellers typically spending a gap year or two in sunny Bondi Beach to the suburbs close to universities with abundant student accommodation, border closures have caused vacancy rates to rise and lower returns for some investors.”</p><p><strong>Pre-Covid international student population in Australia</strong><br></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><table><thead><tr><th>Country</th><th>Number</th><th>Share</th><th>Ranking</th></tr></thead><tbody><tr><th>China</th><th>190,926</th><th>27.8%</th><th>1</th></tr><tr><th>India</th><th>115,137</th><th>16.8%</th><th>2</th></tr><tr><th>Vietnam</th><th>24,218</th><th>3.5%</th><th>3</th></tr><tr><th>Brazil</th><th>21,531</th><th>3.1%</th><th>4</th></tr><tr><th>Malaysia</th><th>20,135</th><th>2.9%</th><th>5</th></tr><tr><th>South Korea</th><th>18,246</th><th>2.7%</th><th>8</th></tr><tr><th>Hong Kong</th><th>12,745</th><th>1.9%</th><th>14</th></tr><tr><th>Japan</th><th>9452</th><th>1.4%</th><th>15</th></tr></tbody></table></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><sup><sub>^Source: Department of Education, Jan to Dec 2020 - 686,104 students in total</sub></sup></p><p>During an interview earlier this month, federal tourism minister Dan Tehan said they were taking medical advice and wanted to open more travel bubbles.</p><p>“Obviously Singapore would be a very good next step to build on what we have already achieved with New Zealand, but we&#x27;ll take our time, we&#x27;ll work that through,” Tehan said.</p><p>“Then we could look at other countries such as Japan, such as Vietnam, which has also done a very good job at dealing with Covid-19, South Korea—there are many options, so we&#x27;ll continue to work through those.”</p></div></div></div></div></div>

There are calls for more international travel routes to reopen as the New Zealand bubble is lauded as the starting point for inner-city rental markets

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Like many sectors within the Australian property industry, the purpose built student accommodation (PBSA) has been adversely impacted by the coronavirus pandemic. </p><p>Largely dependent on the flow of domestic and international students, both universities and accommodation providers have had to rapidly adapt to travel restrictions, government orders and border closures.  </p><p>So how have developers, owners, operators and tertiary institutions managed this once-in-a-generation challenge? And what does the future hold for one of Australia&#x27;s most promising real estate and export sectors?</p><p>To help us explore this future, <em>The Urban Developer</em> has assembled three industry leaders to provide an inside perspective on how the Australian student accommodation sector is positioned, now and into the future.</p><p style="text-align:center"><a href="https://www.eventbrite.com.au/e/student-accommodation-in-focus-tickets-122168544405?aff=tudwebsite0content0agenda">Click here for more info.</a></p><p style="text-align:center"></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p style="text-align:center"><strong>In this interactive webinar, we will hear directly from:</strong></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/aa365f5f-6c18-4cd4-8303-5c1e5a3185f7.jpg" width="200"/></picture><div></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p style="text-align:center"><strong>Stephen Gaitanos<br></strong>Managing Director and Group CEO<br><strong>SCAPE</strong></p><p></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>As Managing Director and Group CEO of Scape Australia, Australia&#x27;s largest provider of purpose built student accommodation (PBSA). </p><p>Stephen is responsible for Scape Australia’s strategy, asset origination, financing and investor relations, a position he has held since 2013. </p><p>Globally, Scape has a portfolio of 18,000 beds in either operation or development. </p><p></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/7addc0e4-aa01-499a-a7de-4f0eaf182311.jpg" width="200"/></picture><div></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p style="text-align:center"><strong>Noral Wild <br></strong>Executive Director, Head of Alternative Investments<br><strong>JLL</strong></p><p style="text-align:center"></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Noral is an Executive Director at JLL and is the Australian Head of JLLs Alternative Investments team. </p><p>Noral has over twenty five years’ experience in the real estate industry and focuses on alternative and new and emerging markets. </p><p>Noral foresaw the emergence of purpose built student accommodation (PBSA) and established the first dedicated team in Australia to service this market which has now had in excess of $3 billion in transaction activity.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/f70ce6cd-2c3a-40c4-850f-34647895a026.jpg" width="200"/></picture><div></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p style="text-align:center"><strong>Vincent Wilson<br></strong>Chief Executive Officer, Deakin Residential Services<br><strong>Deakin University</strong></p><p></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>As the Chief Executive Officer of Deakin Residential Services (DRS) he is responsible for the overall operational and strategic leadership of a subsidiary of Deakin University, with the primary purpose of sustainably developing and managing outstanding and market leading student accommodation premises, services, and support for Deakin students.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>The format will feature an interactive panel discussion moderated by The Urban Developer team.</p><p>Attendees will be invited to submit questions prior to, and during, the webinar.</p><p style="text-align:center"><a href="https://www.eventbrite.com.au/e/student-accommodation-in-focus-tickets-122168544405?aff=tudwebsite0content0agenda">Click here to register.</a></p></div></div></div></div></div>

Join three industry leaders to provide an inside perspective on how the Australian student accommodation sector is positioned, now and in the future.

GSA is pressing ahead with new plans for a purpose-built student accommodation scheme at North Terrace in Adelaide.

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Dubai-based student accommodation provider GSA is pressing ahead with new plans for a purpose-built student accommodation scheme at North Terrace in Adelaide.</p><p>The announcement for a new $110 million development, the largest in the sector so far this year, comes as the student accommodation market comes under pressure from the Covid-19 pandemic.</p><p>The 725-room facility will be located in Adelaide’s CBD, directly opposite the Universities of Adelaide and South Australia’s City East Campus.</p><p>Global Student Accommodation, or GSA, originally established the Urbanest accommodation platform before selling out in 2014, said its move into Adelaide would allow it to take advantage of the existing climate acting as a “first mover” in high-growth markets.</p><p>“Australia continues to remain one of the strongest regions for prime student accommodation across mature and emerging markets, and the Australian portfolio is therefore well positioned to deliver strong investor returns as a result of its first-mover advantage,” GSA Group chairman Nicholas Porter said.</p><p>According to a recent report released by commercial real estate Savills, the student accommodation sector has seen a sharp contraction in annual income growth over the recent quarter, recording its smallest three-monthly growth rate since 2013.</p><p>The sector has also taken a hit due to the early shutdown of Australia&#x27;s international borders with <a href="https://theurbandeveloper.com/articles/student-apartments-turn-crisis-housing">most accommodation providers</a> across the country reporting a fall in occupancy levels of between 20 to 50 per cent.</p><p>Prior to the academic year and pandemic, Purpose Built Student Accommodation (PBSA) operators were reporting near record occupancies for 2020 academic year.</p><p>GSA said despite current market conditions, with the backing of its investors’ continued confidence it would press forward with plans to grow its student numbers to 250,000 by 2025.</p><p>GSA, which operates student accommodation buildings across eight countries, currently runs four facilities in Melbourne and Perth. </p><p>The student accommodation providers move into Adelaide marks GSA’s fifth asset on Australian shores, building on its existing presence in Melbourne and Perth where it has 2,127 beds.</p><p>In Melbourne, GSA’s DKO-designed Pelham Street development in Carlton features 242 apartments while Infinity, located in the CBD, offers 335-beds.</p><p>The student accommodation giant’s most recent Australian venture, The Boulevard in Perth—which opened in February 2019, features 573 student beds.</p><p>GSA said it had engaged Synergy Construct, an Adelaide-based contractor to deliver its upcoming project by 2022 while Commonwealth Bank will provide debt funding.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div></div></div>

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Student accommodation operator Scape Australia has acquired the 3,500-plus bed Atira portfolio in a near-$700 million deal as it firms up its presence in Australia’s student property sector.  </p><p>The rapidly-expanding <a href="https://theurbandeveloper.com/tags/Scape%20Australia">operator</a> secured the backing of Allianz Real Estate and AXA for the deal, launching a new core fund with a $1.5 billion mandate. </p><p>Allianz will anchor the newly-launched fund with a $450 million equity commitment, while AXA has stumped up $250 million.</p><p>The Atira platform was listed for sale by Goldman Sachs and Blue Sky in 2018—with Scape, Canadian giant Brookfield and Singapore’s Mapletree named among the bidders for the portfolio. </p><p>Scape is also rumoured to be at the top of the bidding pile to buy Urbanest’s $2 billion student accommodation portfolio. </p><p>The six-building Atira portfolio will seed Scape’s newly-launched core fund, while three Atira development assets in Sydney, Melbourne and Perth will be acquired by Scape’s second joint venture development fund anchored by Allianz. </p><p>The group has now deployed $1.2 billion of capital in the sector, with 2,600 beds currently in operation and another 8,000 under construction.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/578cf580-c06d-40f9-864f-16c07c3a7208.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ International students now represent 32.4 per cent of full-time undergraduates in Australia. </span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Other investors in the multi-fund Scape platform include Dutch pension funds Bouwinvest and APG, a Middle Eastern sovereign wealth fund, German investor WPI and Scape Australia’s founders Stephen Gaitanos and Craig Carracher.</p><p>Gaitanos and Carracher sold their majority stake in The Pad Student Living portfolio—rebranded as Atira by Blue Sky and Goldman Sachs—in 2016.</p><p>“It is great to get our hands back on what is truly an excellent platform,” Gaitanos said.</p><p>“We believe the combined platform will create the undisputed leader in the Australian PBSA sector.” </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/033169df-447f-4608-ba32-31870b7b7426.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ Scape&#x27;s chief executive Stephen Gaitanos (far right) and chairman Craig Carracher (left) at the 43-storey Swanston Street project. Image: Wayne Taylor. </span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>After recently acquiring a <a href="https://theurbandeveloper.com/articles/scape-plans-1bn-unsw-gateway-precinct--">portfolio of gateway sites</a> at the University of New South Wales, Carracher said that the developer plans to “release the pressure value” on an undersupplied Australian student accommodation rental market.</p><p>“The [Atira] acquisition strengthens Scape’s strategy to leverage its branded student accommodation offering in gateway education cities in Australia,” Scape core program director Geoff Lovell said. </p><p>“With this latest capital raising, Scape’s Australian platform grows to $2 billion of equity commitments and the capacity to undertake projects with a gross development value well in excess of $5 billion and over 20,000 student rooms.” </p></div></div></div></div></div>

Student accommodation operator Scape Australia has acquired the 3,500-plus bed Atira portfolio in a near-$700 million deal.

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>The continued slowdown in Australia&#x27;s residential market has lead to renewed interest in the student accommodation sector, an emerging asset class which is now fast becoming one of the most attractive alternative real estate sectors.  </strong></p><p>According to new research from CBRE, Melbourne and Sydney have been ranked among the top ten cities for internationally mobile students.</p><p>While Paris and London were the top-ranked cities for international students, CBRE’s fifth annual Global Living report reveals that Melbourne and Sydney were ranked 3rd and 6th respectively, bolstering Australia&#x27;s emerging student accommodation asset class.</p><p>The mobility of international students is rising rapidly, with the number of students enrolled in higher education outside of their country of citizenship rising by almost six times since the 1970s.</p><p>This surge in incoming students is now having a flow-on effect in the investment market, with heightened interest in student housing as international enrolment numbers grow and investors consider higher yielding property asset classes.</p><p>Related: <a href="https://theurbandeveloper.com/articles/monash-welcomes-new-student-accommodation">Monash Welcomes New Student Accommodation</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/7b148b1f-dbd1-4e67-ac4f-1af03bb51013.jpg" width="1183"/></picture><div><span style="align-content:center;opacity:0.8">Melbourne and Sydney have been ranked among the top ten cities for internationally mobile students.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>While a faltering housing market has left many off-the-plan developers struggling get projects off the ground with fewer pre-sales, developers with a focus on aged care and student accommodation are filling some of the demand for large investor-grade sites.</p><p>CBRE director of hotels and student accommodation Rosie Young  noted that the slowdown in the residential market had increased the viability of student housing projects and helped fuel investor appetite.</p><p>“Commercial operators such as Urbanest, Scape, Iglu and the Student Housing Company are expanding in the market and transaction activity is expected to increase amid a general slowdown in the residential market and as yields in the mainstream commercial property sectors approach new lows,” Young said.</p><p>“This has led to rising interest in the purpose-built student housing sector.”</p><p>“This was reinforced by CBRE’s recent Global Investor Intentions survey, where 9 per cent of investors identified student accommodation as the most attractive alternative real estate sector, up from 4 per cent the previous year.” </p><p>“This represented the biggest increase after data centres.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><strong>International education no longer an emerging asset class</strong></h2></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>The influx of international students has led to a boom in demand for accommodation with developers now vying for properties and land holdings that are traditionally considered prime office projects.</p><p>“With commercial property yields at all-time lows in traditional real estate sectors, investors are increasingly looking elsewhere for return,” Young said.</p><p>This, coupled with growing student demand, has led to rising interest in the purpose-built student housing sector.”</p><p>International education remains Australia&#x27;s third largest export industry, behind iron ore and coal, capturing $32 billion on average per annum for the economy.   </p><p>Australia&#x27;s student accommodation market remains &quot;heavily undersupplied&quot; according to industry experts who predict significant increases in visa applications and international student migration over the coming years.</p><p>Sydney remains the most underserved market with just 2,820 student accommodation beds in the supply pipeline across Sydney according to JLL research.</p><p>Related: <a href="https://theurbandeveloper.com/articles/developer-opportunities-in-the-co-living-space">Developer Opportunities in the Co-Living Sector: Report</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/f9547839-b074-4d8f-849e-e9fe89b2b956.jpg" width="1024"/></picture><div><span style="align-content:center;opacity:0.8">Urbanest has been put up for sale by its offshore owner.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><br><strong>Urbanest listed</strong></h2></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>According to Street Talk, Urbanest, Australia&#x27;s fourth biggest student accommodation provider, has hit the block, rumoured to be worth close to $2 billion. </p><p>It is understood Savills has kicked off the process by sending a sale flyer to potential acquirers looking to gain a foothold in the domestic student accommodation market.</p><p>Urbanest currently has 12 student accommodation properties in Australia with more than 6,000 operational beds.</p><p>The company expects to collect close to $100 million in net operating income over 2020, of which 81 per cent is underpinned by student housing sites in Sydney, making up 59 per cent and Melbourne at 22 per cent.</p></div></div></div></div></div>

The continued slowdown in Australia's residential market has lead to renewed interest in the student accommodation sector.

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><a href="https://theurbandeveloper.com/articles/hutchinson-multiplex-shortlisted-for-billion-dollar-queens-wharf-contract-"><strong>Contractor Multiplex</strong></a><strong> has completed its sustainable student accommodation precinct at Monash University&#x27;s Peninsula campus in Frankston.</strong></p><p>After a year of construction, the eco-friendly residential building is now complete and has been built in line with Monash’s net zero carbon emissions strategy.</p><p>The student building, which marked Multiplex&#x27;s first foray into cross-laminated timber construction (CLT), comprises 150 single occupancy units set over six levels.</p><p>The use of CLT has the capacity to halve the embodied carbon in the building relative to a concrete structure.</p><p>Related: <a href="https://theurbandeveloper.com/articles/hutchinson-multiplex-shortlisted-for-billion-dollar-queens-wharf-contract-">Hutchinson, Multiplex Shortlisted for Billion-Dollar Queen’s Wharf Contract</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/31db77e2-f16f-46d7-934c-fc54039f8e7f.jpg" width="2500"/></picture><div><span style="align-content:left;opacity:0.8">Multiplex faced challenges during construction with the procurement of CLT from Italy delivered within a tight schedule.</span><span style="float:right;opacity:0.8">Image: Multiplex</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>“Environmental sustainability was at the forefront of this project and we are proud to provide students of Monash University with this progressive accommodation,” Multiplex regional managing director Graham Cottam said.</p><p>The project has also been built with the target of receiving Passivhaus certification, with a strong focus on occupant comfort, health and ultra-low energy use.</p><p>“The design and build processes have been accompanied by a determination to get every detail correct for the Peninsula Campus to have a landmark architectural initiative with unparalleled sustainability goals,” Monash University pro vice chancellor David Copolov said.</p><p>The project, designed by Jackson Clements Burrows, features communal kitchens, games rooms and principle apartments with a total floor area of 6000 square metres. It has also been topped with a solar panel system to reduce operating costs.</p><p>Busy within the higher-education construction realm, Multiplex recently completed the <a href="https://theurbandeveloper.com/articles/monash-welcomes-new-225m-gateway-building">new $225 million, 30,000 square metre, Learning and Teaching Building at Monash University </a>designed by John Wardle Architects. </p><p>The contractors also recently completed the <a href="https://theurbandeveloper.com/articles/monash-university-appoints-contractor-81-million-biomedical-facility">$81 million world-leading Biomedical Learning and Teaching Building</a> at Monash University&#x27;s Clayton campus. </p></div></div></div></div></div>

Top-tier contractor Multiplex has completed its sustainable student accommodation precinct at Monash University's Peninsula campus in Frankston.  

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Student living operator Scape has acquired a Swanston Street site with plans to rework the approved permit to accommodate 500 beds.  </strong></p><p>The site was <a href="https://theurbandeveloper.com/articles/besgate-lists-120m-of-melbourne-sites">listed last year</a> by Sydney developer Besgate Group as a “marketable, ready to go project” and sold with development approval for a 159-unit, 12-storey tower.</p><p>Scape acquired the 558-566 Swanston Street site for $31.5 million, <em>Fairfax</em> reported, adding to its $1 billion portfolio. </p><p>The Scape site sits adjacent to Little Hall, Paul Little’s <a href="https://theurbandeveloper.com/articles/little-projects-university-of-melbourne-tower">philanthropic student accommodation project</a> for the University of Melbourne. The $100 million building will house 669 students on the former International Tobacco Co. factory site on the corner of Swanston Street and Lincoln Square. </p><p>The former Toll Holdings boss and his wife Jane Hansen made a $30 million gift to the university in May, with plans for at least $2 million of returns from the hall to be used to fund a scholarship program for students. </p><p>Earlier this year Scape <a href="https://theurbandeveloper.com/articles/scape-secures-1bn-backing-for-student-accommodation-fund">secured financial backing</a> from European and Middle Eastern investors to round out a $500 million fund, adding to a <a href="https://theurbandeveloper.com/articles/scape-wins-250m-from-allianz-for-new-student-accommodation-fund">$250 million investment from Allianz Real Estate</a>. </p><p>The University of Melbourne has reportedly flagged plans to invest in the booming student accommodation sector, recently appointing advisory group Flagstaff Partners to undertake an investment process for a portfolio of 1000 beds.  </p><p>Related: <a href="https://theurbandeveloper.com/articles/-student-one-launches-worlds-tallest-student-accommodation-tower-in-brisbane">Student One Launches World’s Tallest Student Accommodation Tower</a> </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/3e33de09-9653-4059-84a9-fc097fe24c3b.jpg" width="615"/></picture><div></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><br><strong>Cedar Pacific announce builder for Uni of Melbourne accommodation project </strong></h2><p>ASX-listed Watpac has been awarded the $49 million contract to build a 13-storey accommodation tower to house 648 University of Melbourne students. </p><p>The purpose-built tower is being developed by student accommodation fund manager Cedar Pacific. The group has also sought financial backing, announcing that it was looking to raise up to $600 million to invest in PBSA projects.</p><p>Watpac also delivered the Leicester Street student accommodation project – a 648-bed, 14-storey project next to the Cedar Pacific tower – at the University of Melbourne in 2016. </p></div></div></div></div></div>

Student living operator Scape has acquired a Swanston Street site with plans to rework the approved permit to accommodate 500 beds.

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Scape Australia has partnered with Allianz to form a new $500 million fund focused on developing new student accommodation in Australia’s major capital cities.</strong></p><p>The property arm of the global insurer and asset manager, Allianz Real Estate, will take a fifty per cent share in the new fund.</p><p>Student accommodation provider Scape currently has three assets operating in Sydney, Melbourne and Brisbane with more than 1600 student accommodation bedrooms.</p><p>Proceeds of the new fund will be used to invest into purpose-built student accommodation developments in Sydney, Melbourne, Brisbane, Perth, Canberra and Adelaide. The new fund follows Scape&#x27;s first effort, the Scape Australia JV 1 fund, which has invested $600 million across 11 developments across the past three years.</p><p>Related reading: <a href="Scape Australia has partnered with Allianz to form a new $500 million fund focused on developing new student accommodation in Australia’s major capital cities.">Wee Hur Appoints Partner for $700m Student Accommodation Investment</a></p><p>Allianz Real Estate Asia-Pacific chief executive Rushabh Desai said Australia’s purpose-built student accommodation market is markedly underpenetrated relative to the UK and US markets. </p><p>“Education has become the third largest export sub-sector for Australia,” Desai said.</p><p>“The proportion of students staying in purpose-built student accommodation is likely to grow significantly [with] most of this demand expected to be concentrated in Australia’s tier one cities.”</p><p>Allianz Real Estate’s global AUM currently sits at over EUR56 billion. Chief information officer Olivier Teran says their target is to hold five per cent of this figure in the Asia-Pacific region. </p><p>“This transaction is particularly exciting as it marks our first investment in student housing in the region,” Teran said.</p><p><strong>Australia’s growing student accommodation sector</strong></p><p>Student accommodation has emerged as a growing opportunity in Australia, with international students in 2017 ranking Australia as the<a href="Scape Australia has partnered with Allianz to form a new $500 million fund focused on developing new student accommodation in Australia’s major capital cities."> third most popular location</a> to study abroad in the world.</p><p>While nearly 50,000 bed spaces are expected to be made available to students between 2015 and 2021, by the end of 2020, the <a href="https://theurbandeveloper.com/articles/student-accommodation-grows-investor-appeal">national undersupply of bed spaces</a> is projected to increase by 39 per cent.</p><p>“We are delighted to welcome Allianz Real Estate, their team and the Allianz brand as our major, long-term capital partner,” Scape managing director Stephen Gaitanos said.</p><p>“We have continued to develop our best in class student service, real estate development and investment management capability and are well positioned to take advantage of our strong global brand, local profile and best in class branded student service to our domestic and international students.”</p></div></div></div>

Scape Australia has partnered with Allianz to form a new $500 million fund focused on developing new student accommodation in Australia’s major capita

STUDENT ACCOMMODATION