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News release


Growth in the demand for student housing in Australia with further global players poised to enter the market

Jones Lang LaSalle in Australia follows in the footsteps of its UK and US businesses to establish a presence in this sector of the market which is set to grow over the next 5 years

AUSTRALIA, 6 AUGUST 2012 – With demand for purpose-built student accommodation growing across Australia as student numbers increase consistently year-on-year, global investors, developers and operators are keenly looking at this sector of the market.

Australia’s largest real estate services firm, Jones Lang LaSalle has established a Student Accommodation Services business to assist clients and investors in the expected growth in investment opportunities in this sector.

Stephen Conry, CEO of Jones Lang LaSalle Australia said the firm had made the decision to specialise in this area to assist an increasing number of clients in this sector and off the back of the global growth in this investment class.

“Student Accommodation is a growing asset class and there are enormous opportunities in Australia. The demand for student accommodation is not adequately met and more and more investors are seeking to meet that demand and we can assist them.
“Jones Lang LaSalle already has global capacity and expertise in the sector which we are already putting to good use. 

“Jones Lang LaSalle in Australia already has a strong focus on ‘social infrastructure’ services which includes sectors such as retirement living, health and aged care, social and affordable housing and child care. 

“We see student accommodation as another sector which naturally fits under this wider umbrella of social infrastructure and we believe that our clients will be seeking to invest in funds or assets of this nature to further diversify their portfolios,” said Mr Conry.

Jones Lang LaSalle’s focus on social infrastructure is led by National Director Noral Rich.  Noral re-joined the firm in 2011, following 9 years’ experience in the social infrastructure industry at Ernst and Young.

Ms Rich said, “The student accommodation model has become significantly more sophisticated in recent years and Australia is now beginning to see the ‘real’ student accommodation model take presence.

“Our new Student Accommodation Services team will work with our global colleagues to assess investment opportunities for our global clients seeking to expand and grow in the Australian market.

“The demand for purpose built student accommodation facilities is increasing globally. With consistent increases in student numbers in Australia, there is a clear need for suitable, quality accommodation options to satisfy the growing student demand.
“Despite the number of new standard residential developments in CBD locations in proximity to Universities, this does not necessarily meet the demand from students who are seeking purpose-built accommodation.  As the occupants of these purpose-built buildings are all students the appropriate social context is created which assists with the integration process for new students to Australia.
“The increase in student numbers in Australia during 2002-2011 is significant.  The number of international student doubled during this period to reach 242,350 in 2011,” said Ms Rich.
Jones Lang LaSalle’s Student Accommodation Services team will provide advice to owners and operators, developers and investors in this sector.
Ms Rich said, “The range of services that our Student Accommodation Services team will offer include sales, site acquisition, transaction support and advisory, development feasibilities, valuations, due diligence, strategic consulting and market studies


“The student accommodation sector has come a long way from the days of selling off small residential units on guaranteed returns through leases to students.  The model now is a much more sophisticated product that includes both the physical asset and the operational business.  Despite a traditional reluctance by super funds and institutional investors to invest in the ‘residential’ asset class, the student accommodation model is now attractive to these groups due to higher yields and security of income,” concluded Ms Rich.