Mark MacDonald - Student Housing Australia - Understanding the student housing market
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Transcript of 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
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