Melbourne continues to hold the largest PBSA pipeline nationally, with 12,656 beds. However, much of this supply remains in the planning and approval stages, and delivery is not guaranteed, according to Student Accommodation Council Executive Director Adele Lausberg.
“The impact of steep land tax charges on student accommodation in Victoria is a key factor delaying projects as they move from approval to construction,” Ms Lausberg said.
“It’s not just about how much pipeline exists. It’s about how much of that pipeline is actually investable and deliverable.”
Perth has the second largest pipeline at 8,209 beds and is leading the country in projects advancing to construction, with 3,771 beds currently underway.
“This reflects strong investor confidence and supportive policy settings in the state,” Mr Stuart said.
“Perth has attracted significantly more capital over the past two years, driven by lower planning barriers for student accommodation and strong international student demand.”
Sydney has 7,949 beds in the pipeline, followed by Brisbane with 7,118 and Adelaide with 5,761.
“Sydney has faced greater challenges securing suitable sites and competing with the residential apartment market,” Mr Stuart said.
“This has made delivering viable student accommodation projects more competitive and is a key reason the market remains undersupplied.
“We’re seeing a clear shift in capital allocation decisions, with investors increasingly looking outside NSW and Victoria where policy settings are simpler, more stable and more investable.”
