Drop in foreign students a small risk for PBSA rents

At first glance the 24% y/y drop in sponsored study visas in Q3 2024 spells bad news for PBSA rents. But the cause of that drop - new rules banning international students from bringing dependents - means the decline will have been concentrated in students who are unlikely to have used PBSA anyway. And, with Chinese student visas holding up relatively well, we expect PBSA rental growth will see only a modest slowdown from a high of 6.3% y/y in 2023 to around 3.5% y/y by 2025.