Why real estate investors are homing in on student housing in the Asia-Pacific as a way to diversify their portfolios
- Growth in university enrolments in the region, including a rise in international students, has increased demand for housing that caters to young people’s needs
- Purpose-built student accommodation is a high-yield, low-volatility asset class
University enrolment in the Asia-Pacific region has swollen due to an expanding middle class and more students opting to pursue tertiary education. This surge is expected to continue at a pace of 4.2 per cent a year globally until 2040 with East Asia and the Pacific accounting for the highest volume and largest share.
These factors have combined to create potentially lucrative opportunities to develop purpose-built student accommodation in the region’s cities. Institutional investors looking to diversify away from traditional residential real estate investments have identified the gaps in modern purpose-built student accommodation as an opportunity to access a higher-yielding asset class.
The Scape Australia acquisition of the Atira Student Living platform in September was the country’s largest student housing deal to date. These types of deals will continue to pick up steam.
