Australia consistently ranks among the top destinations for international students. In the past five years, international student numbers have grown rapidly with record growth of 12% in H1 2018, above the long-term annual average of 4%. The strong growth of international student numbers in Australia has led to a supply boom in the purpose-built student accommodation (PBSA) sector in recent years with more commercial PBSA operators establishing their presence in major university cities. This continual growth in international student numbers coupled with the current slowdown in the residential market has the potential to bring new institutional investors into the market as they seek to take advantage of the growth potential. This report will explore the fundamentals that will continue to drive the PBSA sector as well as our house view of the sector’s future direction.