Accommodating thegrowth in students REPORT Demand. supply andpricing for AustralianPBSA markcl CBRE RESEARCHAUGUST2025 Overview •o llustrate ths scute uncer-supply cf stuclertaccom Todation beds tarketsize Austraiarrvcrsiis srycu-2suuncstic ardC.7m Interngtlonal stuclsnts, New Zealand mar<etcormprises 0.18m stucents, including 0:03mntenatienlstudentsCR-afmatethatuatastc carnpus in ourxxw-lu't acuorirnouationESA •UInivorsiey of Mrlleunn and R MIT cazch mentcurrently has 24,goC beds. CBRE stimetecirca -1Ok ul uniricl dciriarid ki PESA inlrMelbou'ne CBD/iniler NGith.Universizy of Sydney and u-s catchmentcurrtl: has: 12,200 hed CBR= eatimate -25koiunme: demand for FBsa in Central/lnn=r-ADUpAS M Ncarly onc: in thrce situlents in Austra lianthe irirxitarice ol he ohort to cducationfuricingl=llowed the Australian university system tc Med ig n rents fer sudent gccom modaton studlasgrgN et CACR 6.5% over 2012 2025 asr0ssMel xourne and Sydncy markets. CARF forecastrent growth in inner city living sectc's willccritiriuc to outpcr'or iri-tltiori, vith livate The Austra isn Govcr nicrt hus cticrcc guica"ccon r6asing 2026 rtak by -25.ox ( $.% yoy)suoported Esuniversity efforts to prowide sut=blesccommdatim. 73% p'emium to two-bicroor Epert ments in thets9tirl7025FB5asA.atalis-ilzoalseric oiccinct. per CER rccarch arialysis Supply and plpeline I he ive largest operators account for over 3u% cftureritl slock CBRE utirutu 28.C00 tzds usu12ply (Astralia-wida) over 2025-28,reprasnts2s% upl ft to current volumes. Sydney 3ccounzsI(u -25% f no supply, ol orl hy Mtllourn:20%, and Erisbane ~20% caprates After record 2o2t: transacton artiviry hsspicked up again in late 2024/earlv 2025. Portfclioacuisitions anl dchopnts mg'n thc hamesof the FBs.A. sector in a.usralia. 1 he ssctor hascx[zricnvd 'clc coniprcssion tc kowing thcouteome ef reretlane-scal trgrsstlons. Student recovery A$ al Mty 7075, Chin C7J%3 9nd1nkli C17K3 v(:f: $lill I* lerfs thorl ma rkts fcinternaticna scudents in Australia. nterastingly thie student orofile cciitinues to diversify.with students frcrn India. N: pal, Colcrnbia. Philippirnics, Victriarn all icwoidirig dcu blc digitgrswth In student num hers over the past lecade. Auslralia had 77gono intuana.ional stunlonla stulying ucross st vauig.v of hiyhor gilucalion vrTand E nglish laligue ge program mes in early-2025. Coniirnicnce'ncnts ot irizcinaticrial st.dents for Hishicr Educat'on Hlat voy, basxi ori May YTD data. Well regarded Austra ion amd Noyw 7cnlinc univiusilins ar! wallraga'ded globally, witlh ten univers ties ranked i- tTor> 10C glcally b:y QS Urivcrsity 1ankirigs 225. Thishelps create cons isten: demgrrd from Iriterlnatona1students seeking 'sranded ed Lic-azion'. I'rospeslv= students comb thro- gh ra *kings to find anapr2iopriste vonue tor higher xducstior. The ig pictursIs one of :oralstent ranklngs: from the Top: 1c: Austral19and Na Zaland universities. More racently, U Nswi hesi*cc $.alun)'n th mkingg, whic:h bod(s wt:ll for-'SA cfferings in nea rby Precincs. Penetration level Nearly on in three students studylig at Australlan unlvers tles Is sn Inernstic/alstuclent. The A.usti: lian Govirin'erit has otter xi guklencs on initeinaticral studentprcenss ing threugh Mr'11, It suppoita cquity vithin the erlucation snctor. I lher is curren:ly one studen: gccom madation bed for every ftsel1 studentsat Australiari uriversities. This is sig nificuntly below glcaal peers wherspxaetratiors are as high as ons in two or one in throe brcls per student. New Zealanid market Inluna ional sluchnl, nr(tments hvn) ssnlially cimphlcc (hir psl Couidrecovery in New Zealend and ere entering a nev! growth shese Inzernaticralstudcrit urivcrsity crircliricrits in 2024 totalled 33,510, 00% ot thc previou:p:eak In 2919. In sluly 2c25, th NZ goven1ment anrouncec: 9 new'lnternational Education Going for Crcwth Pla" that ais to do. ble theinemalional st uslinl stlu lo $7.7 billinn Iy 2034. Chiu ntinucs t bu N: Zuulunt's larast surce Ilar kct besutl n studuntenrel ments altho..gh their cdom na rnce slightly acluced hetween 21za and2C2-i. Pent up d号nand anc Chi-a's non recognicion of online study hscushutl slulcnls ltwadrd in-uuson (ffshor sl vdy: Toc Js hes also ben ag*9w:h aree wrth enrolmnts growing from 655 1n 2022 2,3J0 1 202z Alickland accounts for c4a, of the ..nlverslty atudlent populaclan I~ Na!Zealand. The three ls rgest universities by student nu mbers are U niversit: ofAucklml, Mussy Jniv(:rsilr, dnc Au:klenl Univrsily (of Tchnokogy S pply is active wich a large swdent accorirnodatic" project ct 785 studicrems at 6s-6s Lorns 5treet Ly develnper cedar P8a fi: apenine In Gcteber2C25. ["recinst hav= also expanded their inz==sts into the sector w.ith th=anncurcenenl of u cw bvild student accomnroslaticn facililv of Ssc uni.s a.22 Stg nley St 'se: that is targeting a ~ opening date cf early 2028. Oncecoislete, this will be the larysst PESA tacil'ty iri New Zea arict. ln conversation with stu