“Luxury” student accommodation to ease rent crisis

By Winnie Choo
Sydney’s rental crisis and an increase in the number of international students in the city have driven universities to work with the private sector to build more inner-city student accommodation.

The University of Technology, Sydney (UTS) has requested expressions of interest from the private sector to further develop their student accommodation.

‘We’re looking at an additional 1,100 beds to the 400 we have already,’ said Chris Hepperlin, the Director of Student Services at the UTS.

‘We’re in the advanced stages of the process and a decision should be made by the end of the year.’

With Australian Education International reporting a 20 per cent increase in international student enrolments in NSW between June and July this year, the university is responding to a strong demand for purpose built student accommodation that are close to inner city campuses.

According to Colliers International, a property services company, student accommodation is going ‘luxury’ with international students demanding private baths, high-speed internet and modern furnishings.

‘I think there is a market for luxury’on the other hand, there is still plenty of evidence of students who are price sensitive either because they are short of money, or because they prefer to prioritise their money on other things,’ said Mr Hepperlin.

Colliers International intends to develop at least three purpose-built student accommodation buildings near Sydney universities over the next few years. This type of development provides students with the convenience of location, safety and security and is managed by one company rather than a mix of private landlords.

Eddie Liew, the Director of Student Services at Colliers International said students are looking for luxury in where they live.

The rent for a studio apartment in a Colliers managed student accommodation building in the Melbourne CBD starts at $195 per week.

‘The rent [in Melbourne], is not what you would say is aimed at the lower end of the market,’ said Mr Liew.

‘But we are talking to developers and saying ‘Let’s put in a good mix of affordability for students’.’

Claire Tan, a University of Sydney student from Singapore listed location, affordability, security and quality of rooms as priorities for students when looking for accommodation.

Ms Tan said if one bedroom apartments in the CBD were available for around $195 per week, ‘a lot of students would be running for them.’