Student housing opportunities in the Asia Pacific entice real estate investors

Due to the growing number of university enrollments in the region

According to South China Morning Post, university enrollments in the Asia Pacific has substantially increased due to the expanding middle-class families and the growing amount of students pursuing tertiary education.

Nicholas Wilson, director of capital market research at JLL Asia Pacific, is expecting a 4.2 percent yearly enrollment upsurge around the world until 2040, with East Asia and the Pacific accumulating the biggest share and highest volume.

Moreover, the number of Asian universities with global standards have risen, which encouraged international students to study abroad and local students to get a degree closer to their hometown, without the high costs of Western education.

Aside from the growing number of students searching for accommodation and swift urbanisation, younger generations yearn for a safe, high-tech, experiential, and community-type living, which purpose-built student housing can cater.

More: Shared living: A ‘logical’ trend in Asia

Wilson said that these demands have created profitable opportunities for institutional investors who want to deviate from traditional residential property investments to expand their portfolios and have access to a greater-yielding asset class.

He said that their research revealed high internal returns and yields for student housing compared to other living sectors. Volatility is also considered low for this type of accommodation since it is non-discretionary and its operations have a lower level of risk than regular residential models.

At the moment, however, the university cities of Asia are not yet equipped to handle the influx of international students from around the globe, particularly since they have higher expectations for housing compared to the locals.