The Student Accommodation Council believes additional strain will be placed on existing student accommodation in the wake of the Chinese Government ordering university students to return to on-campus learning in their country of study.
The Council, which is a subsidiary of the Property Council of Australia, last year released a report that indicated that Brisbane, Perth and Adelaide student accommodation tenancies were already at capacity, with zero vacancy anticipated for sometime in 2023. This was well before the announcement by the Jinping Government, which will only increase the level of strain faced in capital cities to accommodate tertiary students.
Chinese students take up the highest amount of student accommodation tenancies in the country at 27 percent. Domestic Australian students rank second at 26 percent, with both cohorts accounting for just over half of all student accommodation residents.
“With students scrambling to return earlier than expected, we will see student accommodation full in many markets – which will put pressure on already tight rental markets as students look elsewhere for places to live,”says Student Accommodation Council Executive Director, Torie Brown.
“Data released by Savills showed the supply pipeline for purpose-built student accommodation beds is muted for the next two years – with 100 per cent of the new beds coming online in 2024 located in Sydney and Melbourne.
Brown says the creation of new student dwellings is at a critical level.
“Governments at all levels need to prioritise the development of new student accommodation because it provides appropriate housing exclusively for students and stops them competing with mums and dads in the rental market.
“Expedited planning approvals, removing taxes like foreign investor fees and planning systems that prioritise student accommodation close to places of study should all be a top priority for policy makers,” she concludes.
Image: Gillies Hall, Monash University.
