JLL, Student Accommodation Council warn of housing shortage in Adelaide CBD

South Australia’s international education market has returned to pre-pandemic levels but one dire shortage means we risk failing to capitalise on the surge.

Adelaide’s student accommodation sector is facing a shortfall of up to 2000 beds over the next five years, according to a new report from property firm JLL, as international education makes a full recovery from the pandemic.

With international student enrolments in South Australia up close to 20 per cent in 2023, and surpassing the pre-Covid high, JLL’s report suggests a lack of new developments risks leaving Adelaide short of the accommodation needs of a new wave of arrivals.

With South Australia’s residential vacancy rate sitting below 1 per cent, the supply shortfall is unlikely to be met by the broader housing market, JLL says.

The firm’s SA managing director Ben Parkinson said the trend was likely to “get the attention of developers and operators”.

“This is an exciting time for the PBSA (purpose-built student accommodation) sector in SA, particularly with the merger of the University of Adelaide and UniSA in 2026, with a likely increase in enrolments further increasing demand for student beds,” he said.

Student accommodation buildings in the CBD are currently 90 per cent occupied, according to the Student Accommodation Council

JLL’s warnings about a looming shortage come amid a fiery debate over developer Wee Hur’s plans to deliver 700 new student beds at the Crown and Anchor hotel site on Grenfell St.

Vocal opposition over the proposal to redevelop the historic live music venue has been supported by the Greens, which are pushing for an overhaul of planning laws to protect the state’s cultural institutions.

Wee Hur’s proposal will be considered by the State Commission Assessment Panel following a public consultation phase which closed on May 10.

Student Accommodation Council executive director Torie Brown said it was important the “emotive” debate considered the need for more student accommodation in the city.

A report from the Council, released last month, showed the Adelaide City Council area had the highest concentration of international student renters in the country, comprising one in four of all renters in the CBD.

“As the State Commission Assessment Panel (SCAP) examines the proposal to redevelop the Cranker site, they will consider the need to add new student rooms into our city. While the debate has been emotive, we mustn’t lose sight of the housing needs facing our city,” Ms Brown said.

“With the university merger looming, we need to make sure that record low rental availability doesn’t impact our attractiveness to students looking to study in Adelaide.

“It is much easier for an international student to find a bed in a PBSA building, than in the private rental market.

“We need to grow the supply of PBSA buildings within the CBD to keep pace with demand for professionally managed student accommodation.”

Ms Brown said PBSA buildings in the CBD were currently tracking at about 90 per cent occupancy, while some buildings were completely full.

JLL real estate economist Ronak Bhimjiani​, who co-authored the firm’s report, said investor interest in student accommodation was increasing given the rise in rental growth and student numbers.

“Australia presents a compelling case for PBSA investors through relative value, geographical diversification and the opportunity for operators to steadily grow their platforms by capturing a greater share of the rising number of international students,” he said.

“Australia’s consistently strong university rankings, connectivity to Asia, and the quality of student life have all been key pull factors for international students studying in Australia. “These factors have contributed to the growing interest from capital in the sector, with further investment in the space expected in the short to medium term.”