Download pdf - Mark MacDonald - Student Housing Australia - Understanding the student housing market

Presented by: Mark McDonald

CEO - Student Housing Australia

Student Housing Market

Topic

Understanding the Student Housing

Market in Australia

• Supply and Demand in Australia

• Types of Accommodation


Supply and Demand in Australia

Current state of play

• 15% of students are internationals

• 60% of accommodation demand from internationals

• Growth Plateaued Since 2008-09 • Global Financial Crisis

• High Australian Dollar

• PR points around Immigration



• JLL – 40,000 beds

• 44% University affiliated • Colleges

• Residence halls

• 56% Purpose built housing • Various ownership and management

structures



• Federal & State Government support • Attracting international students

remains national priority

• Baird Review (2010) • Education of Overseas Students

• Knight Review (2011) • Student Visa Program

• VMIA (2011) • Vic Gov Risk Management

• Decline in the international education market



• VIC 13,500 beds

• NSW 11,000 beds

• ACT 5,500 beds

• QLD 4,000 beds

• SA 3,700 beds

• WA 2,400 beds

• TAS 1,000 beds

• NT 500 beds

• NSW most Uni affiliated

• VIC most Private

• ACT most Beds/population



Two Clear Groups

• Domestic Students • More stable environment

• Have more options

• International Students • Less stable environment

• Immigration laws

• Australian dollar

• Negative publicity

• High start up costs



Looking Forward

• 10 years behind mature markets • In USA & UK

• Growth continued post 08-09

• Easing of Australian Dollar

• Baird & Knight effect

• One of AU largest exports



• Numbers coming up again

• IDP - YTD March 2011-14 • Higher Ed - rising from 2011

• ELICOS - rising from 2013

• VET - following in 2014

• Rising Asian numbers • China’s emerging middle class

• Only double digit % nationality

• 28% as at Dec 2013



Funding challenges

Education providers

• Universities

• Tafe

Global entities

• Transfield (CLV)

• Urbanest

• UniLodge

Private sector developers

• Student Housing Australia (SHA)

• YMCA



As an Asset Class

• LVR’s

• Residential property

• but Commercial lend

• Bank lending regulations

• Private funding

• SMSF


Types of Accommodation

Two Groups

• Education provider affiliated

• Private sector



Education provider affiliated

• Without Residential Tenancy Overlay

Business Model

• Dormitories

• Multi bedroom apartments

• Shared bathrooms & kitchens

• Higher pastoral care overlay

• National Rental Affordability Scheme (NRAS)



Private sector

• With Residential Tenancy Overlay

Business Model

• Private Bathrooms

• Private Kitchens

• Separately metered utilities

• Bonds with RTBA

• If not - Rooming House • Health & Wellbeing Act


Typical Internal

Typical

Internal

Typical Buildings

Typical Features

Typical Apartment Plan

Conclusion

• Indicators say • Growing student numbers

• Ongoing demand

• Industry sector maturing

• Ongoing Governmental support

• Major export earner

• Things to flag • Funding and LVR’s

• Desired outcomes • Strong academic outcomes


Presented by: Mark McDonald

CEO - Student Housing Australia


Thank You