Student Accommodation Pipeline Expands

Purpose-built student accommodation is integral to easing residential housing pressures and underpinning the long-term vitality of university cities, with investors increasingly recognising the asset class’s structural strengths.

Demand for the “beds, eds and meds” living sectors is building, with purpose‑built student accommodation (PBSA) emerging as a standout investment sector as capital seeks resilient alternatives to traditional property classes.

Bayleys national director of commercial and industrial and head of capital markets, Ryan Johnson, says international data highlights a persistent undersupply of PBSA, reinforcing the sector’s long‑term investment appeal.

“Our global real estate partner Knight Frank anticipates a rise in public‑private partnerships as universities and development entities collaborate to unlock strategically located sites, underpinned by growing investor appetite for university‑leased assets with long, net lease terms and secure income profiles.

“Joint ventures and capital partnerships are improving development viability, supporting the delivery of new accommodation to meet expanding student populations, and buoyed by high occupancy levels.”

According to Knight Frank’s latest international survey, access to quality student accommodation is a critical factor in where students choose to study, reflecting growing expectations around affordability, amenities, safety, pastoral care and academic performance.

“Student accommodation is now recognised as core rather than a nice-to-have among tertiary education providers, acting as a vital student attraction and retention tool,” says Johnson.

Demonstrating the sector’s evolution, Precinct Properties is advancing two major student accommodation projects delivering around 1,600 beds across two sites at 256 Queen Street in Auckland’s CBD, and 22 Stanley Street, Parnell, at Carlaw Park Student Village.

Private property development investment and management firm Reidy & Co, its joint venture partner Haydn & Rollett, and capital partner Ergon Properties, developed the first three stages of the comprehensive Carlaw Park Student Village, starting in 2014 and progressively building as demand increased.

Reidy & Co’s proven model has delivered quality student accommodation options for the University of Auckland, which has taken long-term commercial leases and assumed operational management across the precinct. Managing director Greg Reidy says global trends have guided the evolving blueprint at Carlaw.

“The first three stages of the village focused on three-to-six-bedroom apartments which appeal to those students who want a flatting experience with other like-minded students. The apartments have efficient layouts and are backed by common social and utility areas and communal outside spaces.

“The building at 22 Stanley Street will complement the existing student accommodation at Carlaw and comprise 964 ensuited studio apartments providing independent living, supported by communal amenities including study rooms on each level and other shared spaces at ground level to encourage connection and engagement.”

Meanwhile, demand for student accommodation is rising at the University of Waikato’s expanding Tauranga campus. The university plans to convert a commercial building at 146 Durham Street into student accommodation by late 2027 and has confirmed a new purpose-built development at 219 Cameron Road in the CBD.

Reidy & Co, Haydn & Rollett and ownership partner Ergon Properties are facilitating the development, due for completion in 2029. The project will deliver 228 ensuited studios with shared amenity spaces and will be secured by a long-term lease with the university.

At the corner of Lorne and Rutland Streets in Auckland’s CBD, close to the University of Auckland and AUT, Campbell House is a 1920s masonry building with an Art Deco heritage façade that has been transformed into a landmark purpose‑built student accommodation hub.

Delivered through a partnership between McConnell Property, Cedar Pacific and UniLodge, the heritage building anchors an 18‑level development providing 758 student beds. Operating as UniLodge Auckland Central, the recently opened complex integrates retained heritage architecture with contemporary student living.

McConnell Property development manager Aimee Cornish says the project balances heritage preservation with modern performance and sustainability outcomes.

“The restoration works have enhanced the heritage values of Campbell House and secured its long-term future. By retaining the original structure, the project met its ambitious sustainability targets, significantly reducing embodied carbon and achieving a 5-Star Green Star Design and As Built NZ v1.0 rating.”

Social outcomes were central to the brief, with communal amenities designed to support connection, wellbeing and independent living. Cornish says strong resident feedback reinforces the model, which McConnell Property intends to replicate as the PBSA sector evolves.