Supply of Purpose-Built Student Accommodation (PBSA) could increase by one third on current volumes over the next few years if all planned projects proceed, new CBRE analysis shows.

CBRE’s Accommodating the Growth in Students report notes supply is forecast to increase by 34,000 beds across Australia from 2026-2029.

Melbourne accounts for 28 per cent of supply followed by Perth at (22pc) and Sydney (20pc).

While this is an uplift of one third on current supply, there remains a significant pool of unmet demand for PBSA in Australia with a shortfall of approximately 185,000 beds.

One in three Australian students international

Australia’s intake of international students is expected to be broadly flat over the five-year period from 2023-2027. 

Nearly one in three students in Australian universities is an international student. 

CBRE assess the penetration of PBSA is 7pc of students in Australia.

This is relatively low in a global context.  

The report notes since 2022 student accommodation rents have increased substantially, along with a recovery in international student numbers.

CBRE’s Head of Research Pacific, Sameer Chopra notes newer and highly amenitised stock, which students prefer, is providing a boost to average market rents (continues below).

“Student accommodation rents are currently at a 12% premium to rents for two-bedroom apartments in the same precinct,” Mr Chopra said.

“Today, nearly a quarter of PBSA standard suites have rents above $700/week,” she added.

“This used to be a phenomenon in Sydney and Melbourne but we’re seeing similar new stock with higher rents in Adelaide, Brisbane and Perth,” according to the executive.

“The premium rents are explainable as purpose-built student accommodation is usually furnished and offers utilities like electricity and wi-fi, breakfast and coffee facilities, community and social activities, safety and security like CCTV and card swipe access, as well as amenities including gym and study areas”.

Brisbane rent growth pacing high

CBRE assess the median rent for a sample of student accommodation studios in Sydney and Melbourne properties grew at CAGR [compound annual growth rate] 5pc over 2018-2026.

During 2026, national rent growth was low single digit, with Brisbane pacing higher than Melbourne and Sydney.

CBRE Director, Living Sectors – PBSA, Valuation and Advisory, Rosie Young notes cap rates for PBSA assets in Australia have been broadly stable over the past 18 months, despite the volatility in interest rates which impacted other sectors.

“Whilst there have been some operational challenges facing the PBSA sector this year with the introduction of increasingly tenant friendly legislation, making it easier and cheaper for tenants to terminate agreements early, yields have proven to be surprisingly resilient despite the higher rate environment…investors are taking a long-term view with the fundamentals of the living sector and PBSA still proving highly appealing,” Ms Young said.

For a copy of the 20-page report contact Sameer Chopra at sameer.chopra@cbre.com

Warburg Pincus is increasing its commitment to Australian rental housing, expanding its collaboration with Kio Investment Management to pursue a portfolio targeting an end-value of $2.5 billion.

The enlarged venture will buy and develop build-to-rent projects across the major capitals while adding purpose-built student accommodation to its book.

The partnership. Established in 2024, has already secured four BTR projects, three under construction.

In Melbourne, it is acquiring 159-167 Johnston Street, Fitzroy – a site which just received ministerial approval for redevelopment – and 647 Chapel St, South Yarra.

The other complexes are the Halō project at 10-12 Cordelia Street, South Brisbane, and in Sydney, 88-110 Regent St, Redfern.

A fifth development is now being seeded into the platform: Kio’s 407-unit Collingwood, Melbourne, project (artist’s impression, top), which it agreed to acquire in June from Malaysian developer UEM Sunrise on a funds-through basis.

Warburg Pincus is New York based.

Kio was established by Warburg Pincus and Sydney-based Sam Bisla in 2024.

Collingwood deal

The Collingwood project at 21-53 Hoddle Street, on the south-west corner of Langridge, will contain two towers, the tallest, 23 levels, with retail and a public square.

The site spans 5390 square metres (continues below).

The expanded Warburg Pincus-Kio mandate will also cover purpose-built student accommodation, or PBSA, allowing the partnership to invest across a broader institutional living platform that BTR alone.

Warburg Pincus managing director Andrew Fitzpatrick said it reflected its ability to build a scaled Australian living platform.

Warburg Pincus keeps backing Australia

The expansion adds to a series of Australian property investments involving Warburg Pincus.

The firm has also teamed with Singapore based operator StorHub for a self-storage portfolio.

The US group has also teamed with Hale and Oxford Properties on a multi-level logistics project in Sydney’s Rosehill, backed by a $205m debt facility by Nuveen.

That project will contain 49,173 sqm.

Warburg Pincus has also expanded its Asian real estate exposure with Lendlease including a $1,8b Singapore life-sciences portfolio via a joint venture in 2024.

The Kio partnership represents a shift into a more concentrated Australian residential strategy with the $2.5b target end value giving a venture a materially larger mandate than the individual BTR projects secured since its launch.

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Dexus for the Industria REIT (DXI) has agreed to divest a Melbourne asset for $14.2 million, while a fresh valuation round added $19.1m to the trust’s $1.5 billion portfolio.

The manager is banking a 4.5 per cent premium to book value for 83 Rushdale Street, Knoxfield.

Via the APN Industria REIT, which Dexus took over six years ago, it paid $9.45m in May, 2019.

The 1.152 hectare asset is leased to Australian Glass Group.

The buyer is cryptocurrency entrepreneur Ed Craven.

Proceeds will be tipped into DXI’s development pipeline and a securities buy-back.

Portfolio value rise

The Knoxfield disposal comes as all 90 properties in the DXI portfolio were independently valued in the year to June 30, Dexus announced to the stock exchange today.

The valuation uplift was a net $19.1m or 1.3pc.

Contracted rental growth and leasing outcomes were drivers; the weighted average capitalisation rate held at 5.91pc.

Like-for-like portfolio income rose 5.3pc while re-leasing spreads reached 21.4pc.

Occupancy was 98.8pc as at June 30, with the portfolio carrying a 5.2 year weighted average lease expiry. About 87pc of income is subject to fixed or CPI-linked reviews.

The portfolio secured 169,693 sqm of leasing during the financial year – 89,414 sqm across the stabilised portfolio, the balance (80,279 sqm), development leasing.

DXI said its urban infill acquisitions were also performing in line with its investment thesis.

The trust recently repositioned and secured a pre-commitment for a Glendenning asset.

Also in Sydney, an additional lease was signed at a Moorebank asset,

At 50 Jayco Drive, Dandenong South, in Melbourne, it locked in a lease renewal above its underwriting assumptions (continues below).

In July 2025, realestatesource.com.au reported the trust sold Brisbane Technology Park to Corval and Exceed Capital for $155.5m.

Development pipeline

At the ASCEND Industrial Estate in Perth’s Jandakot, DXI recently completed 45,200 sqm of product.

The trust’s committed development pipeline now spans five projects; some 68pc of the 54,200 sqm of product it is building, is pre-leased.

Including uncommitted projects, the development pipeline has potential for 219,000 sqm with an estimated total project cost of $217m and completions extended to the 2030 financial year.

The trust reported funds from operations of $55.7m, or 17.6pc per security, exceeding upgraded guidance of 17.4 cents.

Distributions were 16.6pc, in line with guidance.

Statutory net profit fell $74.4m from $84.m a year earlier.

Net tangible assets increased 8c, or 2.4pc, to $3.425 per security.

Look-through gearing was 31.2pc, the lower end of the trust’s 30-40pc target range. It had no debt maturities until FY28 at June 30.

DXI fund manager, Jason Weate, said the trust’s performance was primarily driven by leasing outcomes including forward leasing and positive re-leasing spreads.

The fund also increased its securities buy-back target to 5pc with 60pc of the original 2.5pc target completed.

For FY27, DXI expects funds from operations of 17pc per security and distribution of 16.6c with the latter unchanged from FY26.

The outlook incorporates the impact of a post-balance date zero-cost hedge restructure which is expected to reduce FY27 funds-from-operations but provide greater visibility over medium-term interest costs.

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Australia Post is expanding its parcel locker network across residential, retail and transport sites as a shift towards out-of-home delivery starts to influence the way parcels are collected and returned.

The postal operator said Parcel Locker usage rose 20 per cent over the past year, with more than two million registered users.

Its locker network expanded more than 60pc.

The expansion has taken Australia Post’s broader out-of-home network to more than 5000 collection points, including more than 1500 Parcel Lockers, a company spokesperson said.

Network expansion

The network is being expanded through sites including Post Offices, residential precincts, shopping centres and transport hubs, with Australia Post working with major retail property groups to secure locations.

The push comes as online retailers face growing demand for alternatives to home delivery.

Australia Post said seven in 10 consumers want a range of delivery options at checkout, while almost one in three would change retailers to access out-of-home delivery.

Parcel Locker use for returns has also increased, rising 36pc over the past year, according to Australia Post.

The infrastructure is becoming a more material part of the retail and residential logistics chain as ecommerce volumes shift more parcel traffic towards collection points. Australia Post’s 2026 ecommerce report said out-of-home delivery options were becoming a strategic consideration for retailers, citing higher customer satisfaction and the potential to reduce missed deliveries and customer enquiries.

Australia Post executive general manager, Parcel, Post and eCommerce Services Gary Starr said the changing delivery pattern was driving investment in the network (continues below).

“Australians are looking for delivery options that give them greater flexibility and control, and Parcel Lockers provide a secure and convenient way to collect parcels when it suits them,” he added.

“As shopping habits continue to evolve, we’re investing in the infrastructure and delivery solutions that help businesses connect with customers across Australia while making it easier for people to access their parcels,” according to the executive.

Australia Post is also changing the format of some post offices, with a greater focus on parcels through agency models and dedicated parcel locations.

“With more than two million registered users and demand continuing to rise we’re focused on expanding our Parcel Locker network in convenient locations and strengthening the capacity needed to support Australia’s growing eCommerce economy,” Mr Starr said.

Forever New head of digital and eCommerce Callum Shaw added the retailer had seen increased use of Parcel Lockers since adding the option at checkout, particularly among Millennials and inner-metropolitan customers.

“Since introducing the Australia Post Parcel Locker widget at checkout, we’ve seen a steady increase in customers choosing Parcel Lockers as their preferred delivery option, particularly among Millennials and customers in inner metropolitan areas,” according to the executive.

“The integration was straightforward and has enabled us to offer greater delivery choice,” she said.

“We’ve also seen a reduction in missed deliveries by -12pc, helping deliver a more convenient, reliable experience and a better overall online shopping experience for our customers”.

Australia Post’s current network includes more than 1500 parcel lockers.

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Australian office demand strengthened in the first half of the year, particularly in premium CBD buildings, even as national vacancy climbed to its highest level in three decades.

The Property Council of Australia’s bi-annual Office Market Report found national vacancy rose from 15.8 per cent to 16.1pc over the six months to July – the highest level since 1995.

That statistic includes city-fringe and major suburban office markets.

CBD vacancy specifically increased slightly from 14.8pc to 14.9pc.

Premium-grade CBD vacancy, however, tightened 1.2cp to 10.2pc as occupiers have continued a flight to quality since COVID introduced work-from-home alternatives.

Positive demand, less supply

Brisbane recorded the strongest net absorption nationally, at 38,785 square metres, followed by Perth (27,528 sqm) and Melbourne (26,779 sqm).

Sydney, Melbourne, Brisbane and Perth all posted positive demand.

Net absorption measures space leased by tenants less space returned to the market.

About 176,303 sqm of office space was added to stock levels in the first half – the lowest six-month supply since 2017.

The development pipeline is expected to remain well below long-term averages until 2029.

PCA chief executive officer Mike Zorbas said the office market had moved from a correction phase into recovery (continues below).

“Businesses continue to seek workplaces that support collaboration, attract talent and provide the offerings people value,” he added.

City by city

Melbourne and Adelaide recorded the highest CBD vacancy rates at 18.9pc and 18.4pc respectively.

Brisbane and Canberra were the tightest markets at 9.9pc and 10.2pc.

Sydney and Perth sat in the middle at 13.8 pc and 14.5pc.

CBRE head of office and capital markets research, Tom Broderick, said enquiry volumes increased 19pc in the first half as occupiers regained confidence despite global uncertainty.

Vacancy should tighten over coming years, according to the executive, as new office supply remains constrained.

Cushman & Wakefield head of tenant advisory Josh McNamara added headline vacancy rates increasingly overstated the amount of genuinely competitive space.

“Much of that vacancy is concentrated in older or lower-quality buildings, while availability within prime assets is becoming increasingly constrained,” he said.

Businesses delaying leasing decisions risked finding fewer options as the supply of quality offices tightened, according to the executive.

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ESR has upsized a new sustainability-linked refinancing facility beyond its original US$2 billion (c$3.1b) target after securing demand from a global lender syndicate.

The five-year facility consolidates existing debt into a single multi-currency structure.

It will also support the group’s expansion across logistics property, data centres and related energy infrastructure.

Debt reset

The facility is fully underwritten by HSBC, Mizuho, Qatar National Bank, UOB, Maybank and OCBC along other groups.

The refinancing follows about US$1.1b (c$1.7b) of net debt repayments by ESR in 2025 with further deleveraging initiatives planned this year as the group simplifies its balance sheet (continues below).

ESR chief financial officer Matthew Lawson said lender support reflected confidence in the company’s strategy.

“This refinancing is a tangible demonstration of ESR’s disciplined approach to capital management for long-term growth,” he added.

“The oversubscription reflects strong lender conviction in our sharpened strategy and positions us to move decisively on the opportunities we see across logistics real estate and data centres,” according to the executive.

ESR owns and manages logistics and data centres across Asia-Pacific including Australia and New Zealand, Japan, South Korea, Greater China, Southeast Asia and India.

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Asia-Pacific’s (APAC) data centre development pipeline reached a record 26.5 gigawatts (GW) in H1 2026.

The region added 7.1GW in just six months, marking one of the strongest half-year gains on record as hyperscalers, cloud providers and AI platforms accelerated infrastructure investment across the region.

According to Cushman & Wakefield’s APAC Data Centre H1 2026 Update, the region’s development pipeline now comprises 4.8GW under-construction and 21.7GW in planned capacity.

Approximately 1.4GW of operational capacity was also delivered across APAC, highlighting the market’s ability to bring new supply online at scale while keeping pace with rapidly growing digital infrastructure requirements.

Despite significant new deliveries, colocation vacancy declined from 10.9% in H2 2025 to 10.3% in H1 2026, underscoring continued absorption across key markets and the resilience of occupier demand amid ongoing capacity expansion.

“AI and cloud investment across Asia Pacific has entered a phase of rapid, power-constrained execution,” said Andrew Green, Head of Data Centre Group, Asia Pacific.

“The challenge increasingly lies in securing the power infrastructure needed to support the next generation of AI workloads. Historically, data centres were clustered around connectivity, but now, we’re seeing expansion gravitate towards markets that can provide power at scale.

This is creating new growth corridors across the region and accelerating investment beyond traditional data centre hubs.”

Southeast Asia (SEA) continues to hold the largest share of under-construction capacity in APAC, accounting for approximately 50% of the regional total. Malaysia leads with 1,039 megawatts (MW) under construction, followed by Thailand at 859MW. Strong occupier demand, supportive government policies and continued investment in digital infrastructure have reinforced SEA’s role as a major growth engine for APAC’s data centre sector.

Much of this momentum is concentrated in Johor and Bangkok. Johor’s under-construction capacity nearly doubled to 602MW in H1 2026, while Bangkok recorded one of APAC’s fastest expansion rates, with under-construction capacity surging 148% to 859MW.

Across APAC, several markets recorded notable gains in development activity during the first half of 2026:

Beyond capacity growth, the report highlights how development strategies are evolving across APAC. As infrastructure requirements become more demanding, developers are increasingly prioritising deployment speed, operational efficiency, sustainability, and long-term scalability (continues below).

Pritesh Swamy, Head of Research & Consulting for the Data Centre Group in Asia Pacific, said: “We’re seeing developers move beyond traditional data centre blueprints as infrastructure requirements become more demanding. In most markets, speed to market is increasingly shaping development decisions.

Modular construction approaches and advanced cooling technologies are helping operators maximise available infrastructure while shortening deployment timelines. As computing environments become denser, operators are also placing greater emphasis on resource efficiency and long-term sustainability, including how power and water are managed as facilities scale.”

APAC Data Centre Market Maturity Index

Cushman & Wakefield’s APAC Data Centre Maturity Index tracks 30 markets across the region and provides a comparative view of their maturity and growth potential.

The index evaluates markets based on operational capacity, development pipeline, vacancy levels, operator presence and long-term growth prospects, grouping them into four categories: Powerhouse, Established, Developing and Emerging.

The latest index highlights the growing scale and sophistication of APAC’s data centre landscape. Johor retained its position as the region’s leading market by combined operational and future capacity, exceeding 4GW and widening its lead over its regional peers.

Reflecting the rapid expansion of operational capacity and development pipelines across the region, the criteria underpinning the Maturity Index were revised upwards in H1 2026. The higher benchmarks resulted in several market reclassifications, reflecting the pace at which development pipelines and operational capacity continue to scale across the region.

Looking ahead, Australia, India, Japan and Malaysia are on track to surpass 2GW of operational capacity by 2028.

“The next wave of growth will be driven by markets that can successfully balance scale, power availability and long-term infrastructure readiness. While traditional hubs will remain critical to the digital economy, we’re seeing a broader group of markets emerge as important destinations for future data centre investment, reflecting the growing depth and maturity of Asia Pacific’s digital infrastructure landscape,” said Green.

For more information and to download the report, please click here.

Brett Blundy is returning to familiar retail territory, acquiring an Australian apparel and homewares portfolio including Bras N Things – which he founded and sold eight years ago.

Via BTIF Investments, the billionaire retailer has agreed to buy Hanes Australasia from Canadian apparel group Gildan Activewear in a deal understood to be worth c$700 million (US$490m).

The deal includes Bras N Things, Berlei, Bonds and Sheridan.

It is expected to complete later this year.

Portfolio assembled over years

Hanesbrands entered the Australian market in 2016, acquiring ASX-listed Pacific Brands for c$1.1 billion, gaining control of Berlei, Bonds and Sheridan.

The company had been under pressure for several years before that takeover, writing down more than $1.5b in assets as it restructured its operations.

In 2014, it sold its workwear division, including Hard Yakka, KingGee and Stubbies, for $180m to Wesfarmers.

It later banked $39m from Anchorage Capital Partners for its footwear brands – Clarks, Dunlop, Hush Puppies and Volley.

In 2018 Hanesbrands acquired Bras N Things from Mr Blundy’s BB Retail Capital, a deal valuing the retailer at c$500m (continues below).

Gildon offered the businesses this year to focus on core global apparel operations; the group manufactures and sells activewear, fleece, blank and branded T-shirts, socks and underwear, with retailers, wholesalers and printers all around the world. With brands including American Apparel, Comfort Colors and GoldToe, it is a major supplier to Walmart.

The proposed sale to Melbourne-based Mr Blundy would place Bras N Things alongside Bonds, Sheridan and Berlei under his ownership for the first time.

It would also make the company’s Australian owned again.

Australian owned again

Since selling Bras N Things, Mr Blundy has continued investing heavily in retail through BB Retail Capital – with interests across apparel, jewellery and consumer brands including Adore Beauty, Honey Birdette, the LEGO Certified Stores network, Léays and Lovisa.

It also acquired a stake in Victoria’s Secret.

The Hanesbrands acquisition broadens that portfolio beyond lingerie. Established in 1915 Bonds sells general apparel. Sheridan is renowned for bedding and towels.

The deal is subject to conditions.

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Blackstone is considering introducing new investors into AirTrunk’s operating assets including a landmark facility in Melbourne.

With partner Canada Pension Plan Investment Board, the firm is understood to be preparing a Singapore-listed real estate investment trust backed by a portfolio of mature operating data centres.

The filing has been submitted confidentially.

The move would not involve a sale of AirTrunk; Blackstone is instead considering separating completed, income-producing data centres while retaining ownership of the platform and its development pipeline.

The news comes a week since realestatesource.com.au reported the data centre giant was buying a Mickleham, Melbourne, site with plans for a data centre campus.

That land cost c$350 million.

Asian capital

Blackstone bought AirTrunk in 2024, valuing the business at more than $24 billion – then the firm’s largest Asia Pacific investment.

The company was founded in 2015 by Robin Khuda, now chief executive officer.

The proposed Singapore listing would be notable given AirTrunk is headquartered in Sydney and has its origins in the Australian market.

Singapore has become a key venue for digital infrastructure investors, with a specialist investor base familiar with data centres and a number of listed vehicles focused on the sector (continues below).

The move also accesses Asian capital pools when demand for hyperscale data centres is booming driven by cloud computing and artificial intelligence investment.

Mr Khuda has been co-investing in property development via two companies, Onterra, which backs commercial and industrial, and Ondas, for residential.

What is expected

The vehicle is expected to include four assets – one in Australia, the MEL1 campus in Melbourne’s Derrimut, on Swann Drive.

Spanning 8.8 hectares, with more than 185 megawatts of capacity, it includes 32,000 square metres of technical data centre space – with 34 halls – and 12,600 sqm of offices and storage, backed by high-voltage 66kV power feeds.

The other facilities are in Hong Kong, Japan and Singapore.

The float is tipped to raise about $2.3b (US$1.5b), valuing the initial portfolio at up to $6.7b (US$4.4b).

Blackstone and CPPIB are expected to retain about 50 per cent of the trust while continuing to manage the assets.

Investor marketing commenced through Citi, DBS and Jefferies, sources say, ahead of a September pricing and October listing.

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Former Grocon chief executive Daniel Grollo has been declared bankrupt, almost six years after the collapse of the construction empire once responsible for some of Australia’s most recognisable towers.

The third-generation builder and property executive reportedly owes creditors more than $10 million.

His bankruptcy marks the latest chapter in the downfall of Grocon, which entered voluntary administration after financial pressure linked to major projects and disputes including Sydney’s Central Barangaroo development.

Mr Grollo later proposed a deed of company arrangement in an effort to restructure the business, contributing personal funds as creditors weighed options for the failed construction operations.

Among assets examined during the administration was a Manhattan apartment linked to Mr Grollo at Trump Parc.

Creditors argued the residence, reported to be worth about $40m, should form part of efforts to recover funds.

Empire falls

Founded by Luigi Grollo in 1948, Grocon grew into one of Australia’s largest privately owned construction and property groups (continues below).

Landmark Melbourne projects include Eureka Tower and Rialto Towers.

The group also built in Sydney, Brisbane and Perth.

The business unravelled following mounting financial pressure, leaving subcontractors, suppliers and other creditors facing significant losses.

A long-running legal battle over Central Barangaroo continued after the administration before ultimately settling for a fraction of the compensation originally sought.

Mr Grollo’s bankruptcy is a personal matter and separate from the continuing ownership of other assets and investments held by members of the wider Grollo family.

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