Colliers achieves $18M sale of 66-68 Barker Street, Kingsford at 5.44% yield amid tight PBSA supply.
Colliers has successfully transacted a rare purpose-built student accommodation (PBSA) asset at 66-68 Barker Street, Kingsford for $18,000,000, representing a 5.44% net yield and $450,000 per room highlighting renewed confidence in Sydney’s tightly held student housing sector.
The off-market negotiation led by Harry Bui and Andrew Bui attracted strong interest from both local and offshore investors from Asia including Vietnam, Singapore and Hong Kong drawn to the income stability and prime location of Sydney’s Eastern suburbs adjacent to the University of New South Wales (UNSW).
This sale represents one of the few PBSA transactions completed nationally in recent months, underscoring strong investor demand for student accommodation assets in Australia.
Completed in 2017 by Unitas Premier Pty Ltd, Singaporean-based investor, the modern three-storey complex comprises 39 self-contained studios, a manager’s residence and 17 basement parking spaces for cars and motorbikes. The property has been fully occupied since the covid period due to its prime location and robust rental demand.
“This result demonstrates the continued depth of capital for well-located PBSA assets, particularly in established education precincts such as UNSW. Sydney’s eastern suburbs have one of the lowest vacancy rates in the country and the student accommodation sector continues to benefit from record international enrolments and restricted new supply. The strong yield achieved also reflects investors’ appetite for high-quality, income-secure assets,” said Harry Bui, Head of Asia Markets, Australia.
According to SQM Research, Kingsford’s vacancy rate currently sits at just 2%, while median one- bedroom apartment rents have increased more than 14% since August 2023. This is fuelling the residential boom, driven by severe undersupply of developable land and strong demand particularly from South East Asia for accommodation near highly regarded universities like UNSW. The UNSW precinct, home to over 60,000 students from more than 130 countries, remains a key driver of consistent rental growth and investment activity.
“With the current housing shortage, strong student growth and the sector’s resilience, we anticipate continued capital appreciation in the PBSA market. Opportunities like Barker Street are extremely rare and its highly desirable eastern suburbs location was a key drawcard close to universities, schools, iconic beaches and just 5km from Sydney CBD with excellent transport links,” added Andrew Bui, Manager, Asia Markets | Investment Services.
Related Articles
