An increased supply of housing drives industry revenue
Melbourne, Australia (PRWEB) April 06, 2013
The Student Housing Management industry in Australia has benefited from a number of structural shifts in the composition of Australia's higher education market over the past five years. According to IBISWorld industry analyst Andy Brennan, “traditionally the industry was centred around the management of university-affiliated accommodation, but over half the supply of the industry's beds is now contained in privately developed, purpose-built student accommodation”. As increasing numbers of international students have chosen to undertake their undergraduate and postgraduate studies at Australian universities, providers of specialised student housing have arisen to cater to the growing demand. In 2012-13, international students are estimated to account for a large share of demand for Australia's student accommodation beds. This share has risen considerably over the past decade as international students have overtaken domestic students as the industry's number one market.
The two major players in the industry are Transfield Holdings Pty Limited and Unilodge Australia Pty Ltd. The industry is fragmented in terms of geography and ownership. “The most concentrated market is Melbourne, with several private players targeting the area because of the high density of educational institutions,” says Brennan. Operators in the industry focus on the management or operation of accommodation specifically designed for students. For this reason, revenue associated with property ownership, which some operators do retain, is not measured as part of the industry. Industry revenue is expected to grow at a healthy 5.9% per annum over the five years through 2012-13.
The Student Housing Management industry is expected to continue to grow healthily over the next five years. Revenue increases will be largely driven by the same factors as the past five years, namely an increase in the number of international students and the growing supply of purpose-built student accommodation. Federal government policy over the past five years has made it clear that attracting international students to Australian universities is a national priority. That these students have a comfortable, convenient and affordable place to stay is highly important for Australia's global competitiveness in the provision of higher education.
For more information, visit IBISWorld’s Student Housing Management report in Australia industry page.
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IBISWorld Industry Report Key Topics
Enterprises in this industry specialise in the management and operation of student accommodation. While a number of enterprises in the industry own the property they manage, rental income is not included in the industry, meaning only services relevant to property management are considered.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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