A high-yielding 74-bed student accommodation asset within proximity to one of Sydney’s most notable universities has sold for $24.09 million, amongst a surge in demand for the asset class. 

Dayman Apartments in Marsfield is perfectly located close to Macquarie University, local shopping centres and the Metro Station, with a strong management team in place and an approximate net income of $1.6 million per annum. 

Colliers National Director of Investment Services, Joseph Lin, sold the property, commenting on the increased demand for student accommodation across Sydney. 

“Currently there are 12,000 new international student enrolments per year for Macquarie University and only 1,984 beds available locally. This has led to effective 100 per cent occupancy for almost all student accommodation providers in the area. Given the significant supply demand imbalance, this has driven significant rental growth which will we believe will lead to an increase in property value,” Mr Lin said. 

Dayman Apartments opened in 2014 and is a boutique residential complex for students at Macquarie University in New South Wales, Australia. Spanning seven floors, the asset includes independent apartments, shared apartments, studios, common areas, shared laundry, outdoor courtyards and underground parking. 

Colliers also have a 64-studio co-living asset in Camperdown on the market. Currently occupied by affordable housing tenants, the property is situated ideally close to many key organisations, including the University of Sydney, University of Technology Sydney and RPA Hospital.

Occupier demand for PBSA remains primarily driven by international student commencements although an increasing number of domestic students are choosing PBSA due to the diminishing availability of other housing options. 

Australian universities continue to rank highly and be globally recognised for the quality of their education. The Australian PBSA market is now comprised of over 107,200 beds that have rebounded to full occupancy after the temporary dislocations caused by border closures in 2020–21. 

Melbourne holds 33 per cent of this stock followed by Sydney (24 per cent) and Brisbane (17 per cent). This stock grew by 70 per cent between 2017-2024 with Melbourne attracting the majority of new supply.

Currently, there are only 7,700 beds under construction with the majority of near-term supply located within Sydney (43 per cent) and Perth (26 per cent) and 18 per cent in Melbourne.