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Mark MacDonald delivered the presentation at 2014 Student Housing Forum. The 5th annual Student Housing Forum brought together university planners and managers with designers and student accommodation experts to look at the ways in which universities can provide distinctive, affordable, secure, supportive and inclusive campus living. It examined the features that distinguish best practice, considers the challenges for supply and affordability and beyond that explores the ways in which student accommodation goes beyond a residence to an environment that offers the best campus experience. For more information about the event, please visit: http://www.informa.com.au/studenthousing14
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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
Student Housing Market
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
Student Housing Market
Supply and Demand in Australia
• JLL – 40,000 beds
• 44% University affiliated • Colleges
• Residence halls
• 56% Purpose built housing • Various ownership and management
structures
Student Housing Market
Supply and Demand in Australia
• 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
Student Housing Market
Supply and Demand in Australia
• 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
Student Housing Market
Supply and Demand in Australia
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
Student Housing Market
Supply and Demand in Australia
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
Student Housing Market
Supply and Demand in Australia
• 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
Student Housing Market
Supply and Demand in Australia
Funding challenges
Education providers
• Universities
• Tafe
Global entities
• Transfield (CLV)
• Urbanest
• UniLodge
Private sector developers
• Student Housing Australia (SHA)
• YMCA
Student Housing Market
Supply and Demand in Australia
As an Asset Class
• LVR’s
• Residential property
• but Commercial lend
• Bank lending regulations
• Private funding
• SMSF
Student Housing Market
Types of Accommodation
Two Groups
• Education provider affiliated
• Private sector
Student Housing Market
Types of Accommodation
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)
Student Housing Market
Types of Accommodation
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
Student Housing Market
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
Student Housing Market
Presented by: Mark McDonald
CEO - Student Housing Australia
Student Housing Market
Thank You
