SUMMARY – WORLD WIDE

This is the situation in Australia

• $15 billion were invested globally in the sector worldwide.
• From the overall deals, 40% were cross-border (this in the last 3 years). This shows that international investors are looking to diversify their portfolios and are now looking at new opportunities
• Australia is benefiting from this trend as many European, Asian and North American investors are currently looking at (and investing in) Australia and these type of projects are currently booming.

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DEMAND AROUND THE WORLD

• Australia, Germany and France recorded strong growth in enrolments (Australia with one of the biggest growths).
• The Australian Government announced earlier this year that it has a new plan to bring the number of internatnl. studnts (IA) to almost a million by 2025 (currently there are 600,000 IA’s in Australia). Improved use of technology, partnerships and strong employment outcomes are key areas that will allow the sector to grow.
• China is the largest market for outbound numbers. The second larger market is India which is 4 times smaller than China
• Australia is the third most expensive destination (after the US and the UK).
• Within Europe, Germany has a great balance between quality and value for money.

European countries are trying to attract people via English taught programs (being led by The Netherlands). This is becoming an increasing trend which could become a real threat to Australian Education.

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WORLD WIDE SUPPLY OF PURPOSED BUILT ROOMS 

• Supply of PBSA remains low even in mature markets. The highest supply is offered in the UK with 24%. Australia has 6%.
• All major cities are becoming very expensive. This means that purchasing land is one of the main barriers for new development.
• All new developments are targeting the high-end / premium market (which is exactly what is happening in Australia).
• Nobody is currently working towards helping the lower price points and thus helping the majority of people. There are huge opportunities in this specific market.
• Given that the supply is low in most (if not all) countries, there are great opportunities for expansion. Having said this, it is essential to have someone that understands that particular market/country.

For the whole report please visit Savills website. Savills is a global real estate services provider listed on the London Stock Exchange.