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.