Brisbane’s Student Housing Boom
On a bustling afternoon in Scape South Bank, the 15-story residence feels more like a tech hub than a traditional dorm. This building, located along the Brisbane River, boasts 783 beds and amenities typically found in hotels: shared kitchens, collaborative lounges, rooftop gardens, and round-the-clock management.
This place is part of a trend called purpose-built student accommodation (PBSA), which has been gaining momentum in Australia since the mid-2010s. The surge in international students and tight rental markets are driving the demand for specialized housing.
According to CBRE, international students represent 31% of higher education enrollments in Australia, surpassing percentages in other English-speaking countries. For instance, at the University of Sydney, over half of the incoming class in 2024 were international students. Unfortunately, traditional university dorms offer only about 100,000 beds for Australia’s 1.6 million college students.
To meet this rising demand, governments at different levels are encouraging private developers. They provide incentives like higher density allowances and flexible zoning rules. This has led to a boom in high-rise student housing in major cities like Sydney, Melbourne, and Brisbane.
Once, Brisbane had only one PBSA property in the early 2010s. Now, there are over 20, offering around 16,000 beds. Nationwide, about 120,000 PBSA beds are currently in use, with an additional 25,000 projected by 2027. However, many experts believe that the supply is still lagging behind the growing demand, especially as international student enrollments rebound after the pandemic.
What sets PBSA apart is the focus on community. These spaces are designed to foster social interaction, offering amenities like gaming rooms and creative studios. A student from India living in Sydney remarked, “The sense of community is what makes the biggest difference. It’s not just a place to sleep.”
One of the leaders in this sector, Scape South Bank, operates around 40 properties across Australia, providing over 20,000 beds—about 40% of the country’s market. Their plans for growth include expanding to around 23,000 beds.
In summary, the rapid changes in Brisbane’s housing landscape reflect broader trends in education and urban living. As student populations continue to grow, adapting to their needs will be crucial for both developers and educational institutions.
For more insights on the PBSA market, you can check out CBRE’s reports.
