Student accommodation development opportunity hits market

SYDNEY, 1 August 2022 – A prime landholding in south-eastern Sydney has been listed for sale as developers continue to seek opportunities in Australia’s growing living sectors market.

JLL’s Harry Sullivan, David Hill and Ben Geyer have been exclusively appointed to sell 168-70 Anzac Parade, Kensington on behalf of GYT via an Expressions-of-Interest campaign, with offers anticipated to be more than $20 million.

JLL’s Harry Sullivan said, “168-170 Anzac Parade represents one of the last genuine development sites within the Kensington Town Centre, as most prime development opportunities within the precinct have been developed, amalgamated or recently sold.”

Benefiting from versatile B2 zoning, the 1,115 sqm level, land allotment allows for multiple development options (STCA) providing the opportunity to create an iconic development in Sydney’s next generation suburb of Kensington.

Mr Sullivan said, “Situated in one of Sydney’s most exciting growth corridors, the prime landholding is underpinned by proximity to the University of New South Wales (UNSW), Prince of Wales medical precinct and extensive government infrastructure spending.”

Directly opposite the Kensington Light Rail Stop, 168-170 Anzac Parade provides direct access to the Sydney CBD as well as several prestigious tertiary institutions, UNSW, UTS, TAFE NSW and the upcoming Tech Central precinct.

The site’s improvements include a single-storey commercial building occupied by Australia Post and provides 14 outdoor car spaces. The asset provides a potential leased gross annual income of $162,000.

JLL’s David Hill said, “As residential rental vacancy rates are at an all-time low, the Australian living sectors are seeing major appetite from global investors looking to build out their student accommodation, co-living and build to rent exposure. This listing offers a significant opportunity to gain market share from Australia’s AUD 9 trillion housing market.

“Prior to the pandemic, the 900,000 international students in Australia contributed $41 billion to the economy in 2019. Australia is a highly desirable destination for international students to study in the medium and long term, owing to the quality and global rankings of our educational institutions.

“With Australia’s borders now open to international students, we are seeing the regaining momentum of investors seeking exposure to student accommodation assets, said Mr Hill.

The international reputation of Australia's tertiary education system has attracted the second biggest percentage of students from Asia, after only the United States. JLL anticipates higher education enrolment numbers will return to pre-COVID levels by around 2024.

Expressions-of-Interest for 168-170 Anzac Parade, Kensington close at 3:00pm on Tuesday 23 August 2022 (AEST).