UK’s open borders boosts student housing market while Australia’s hard Covid-19 measures shut out investments
- The UK’s student accommodation segment has received US$3.1 billion in investments so far this year versus a mere US$14.3 million in Australia
- The number of student applications for undergraduate courses in the UK rose 8.4 per cent year on year
The student accommodation segment in the UK and Australia, which rely heavily on overseas enrolments, has witnessed vastly contrasting fortunes because of the diverging policies of the two countries in dealing with the Covid-19 pandemic.
The UK’s open borders and the British National (Overseas) visas that offer a path to citizenship to as many as 5.4 million Hongkongers have led to an influx of overseas students, but Australia has seen fewer students from abroad as the government shut its borders to keep the pandemic at bay.
So far this year, the purpose-built student accommodation segment in the UK has received about US$3.1 billion in foreign and local investment, while Australia has seen a paltry US$14.3 million, all from domestic investors, according to Real Capital Analytics, which tracks deals worth at least US$10 million. They have, however, declined from 2020 when the UK attracted US$6.8 billion and Australia US$1.76 billion.
“In the UK, we continue to see positive macro indicators in the market as it experiences robust demand, irrespective of pandemic-related disruptions,” said Peter Young, co-founder and chief executive of Singapore-based Q Investment Partners, which currently operates projects with more than 1,500 beds in various locations across the UK.
