The student housing sector is not in bubble territory, delegates heard today, despite transaction volumes almost doubling this year.
Speaking at the Property Week Student Housing Conference 2014, John Yeend, director, investment and development acquisitions, at LaSalle Investment Management, said there had been some yield compression of around 50 basis points this year – but argued this was comparable to the rest of the property sector.
“I’d argue it’s not a bubble but there is more compression to come,” he said.
Mark Bladon, structured property finance at Investec, said student accommodation has been mispriced versus other asset classes like retail warehouses because it is an appreciating asset.
Philip Hillman, lead director of student housing and higher education at JLL, said the sector was at a point where investors are seeking both critical mass and quality – leading to the boom in portfolio sales.