Australia’s purpose-built student accommodation (PBSA) sector is showing renewed signs of growth and investor confidence following the Federal Government’s decision not to introduce hard international student visa caps.
According to the Property Council of Australia, certainty has returned to the market after more than a year of policy uncertainty and public debate over the role of international students in the national housing situation. The confirmation that visa caps would not proceed has provided the clarity needed for stalled investments and developments to move forward.
Torie Brown, Executive Director of the Student Accommodation Council, said the sector welcomed the end of the political uncertainty and is now well-positioned to help ease pressure on the broader rental market by delivering more dedicated student housing options.
Development applications for PBSA are now picking up in cities such as Perth and Darwin. However, most activity remains concentrated in the eastern capitals, which continue to experience high levels of student demand and housing shortages. A total of 11,820 PBSA beds are currently under construction across Australia, with 819 of those added to the pipeline since Semester One began in early 2025. This brings the national development pipeline to 36,424 beds.
Major transactions have also resumed. U.S.-based investor Greystar has re-entered the Australian market, acquiring the Y-Suites portfolio from Singapore’s Wee Hur for approximately $1.6 billion. The transaction marks a return of international capital to the Australian student housing sector and reflects renewed confidence in its long-term outlook.
According to Knight Frank’s Q2 2025 update, PBSA investment in Australia has reached $1.8 billion so far this year across four major transactions. This is a significant increase from 2024, when investment totalled just $116 million.
Knight Frank also reports that there are currently 6,912 PBSA beds under construction nationwide, with 2,772 beds scheduled for completion in 2025 and another 5,832 beds expected in 2026. This represents a 40% increase in annual supply, driven by continued rental growth and strong occupancy levels.
The Property Council argues that PBSA plays an essential role in relieving pressure on the mainstream rental market by providing students with dedicated housing options. The Council is calling for state and local governments to support the sector by streamlining planning processes, ensuring tenancy legislation reflects the needs of student housing, and maintaining a stable policy environment for education and migration.
While the sector has regained momentum, industry stakeholders are still calling for regulatory certainty and planning reform to help maintain the current pace of supply. With international student demand remaining strong, especially in major metropolitan areas, the sector is preparing for continued growth over the next two to three years.
The return of certainty to the PBSA market is being viewed by developers and operators as a positive sign that Australia is once again a stable and attractive destination for international education investment. As new beds come online and new projects advance, the sector is expected to play an increasingly important role in addressing Australia’s broader housing challenges.
