Australian Universities Strengthen Bids For New Student Housing; Face Backlash

Key Points

1. The University of New South Wales faced opposition from the local council for its proposed student accommodation project, reflecting broader challenges exacerbated by new federal legislation limiting international student enrolment

2. Calls to fast-track purpose-built student accommodation (PBSA) development in Australia collides with concerns over affordability, exploitation of international students, and opposition from non-residents due to perceived profit-driven motives and visual impact issues.

3. Despite efforts to address the Australian student housing crisis, including proposed expansions of Australian student housing, challenges persist due to delays caused by state and local governments, leaving thousands of students potentially underserved.

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The University of New South Wales sat before a local planning body on Tuesday, June 4th, to lobby for a proposed new student accommodation in Australia. The feelings in the room were hostile, considering the counter-proposal by Randwick Council in Sydney’s eastern suburb to reduce a 1,066-room development, with 20-23 stories on the university’s spark, to seven stories, citing “unsuitable height and bulk.”

Michael Rowe, a director of consultants Beam Planning, told the panel, “This is politically motivated and a blatant misuse of strategic planning.” 

UNSW student housing representatives had earlier reduced the proposal that was to be managed by the student housing company, Iglu, to 15 and 16 storeys with 881 rooms, after more than a year of opposition from the council.  

The council mainly rejected the proposal citing the “overdevelopment” of the local area, as well as encroachment of the neighbouring National Institute of Dramatic Arts (NIDA). Popular in Australian student news, the council’s opposition to this UNSW student housing highlights the dilemma faced by universities in light of the new federal legislation that would allow the education minister to set a “maximum number of new international student enrolments”.

This means that universities can only enrol a certain number of students. If the limit is exceeded, more student accommodation in Australia, near the university’s location needs to be constructed 

But many universities, such as UNSW argue that local governments often act in the opposite direction, making it more difficult for them to house more students.

A record 700,000 international students are currently housed in Australia. According to census data from 2021, about 80% of international students in Australia are renters in the private market. The numbers stand in stark contrast to the availability of just 80,000 purpose-built student accommodations operating in the midst of the student housing crisis in Australia. Accommodations outside of the PBSA Australia market housed only 5% of students in 2021. In comparison, the remaining 15% lived in homestays or other accommodation.

Peak bodies advise that the PBSA Australia market needs to be fast-tracked and that red tape and delays are the main contributors toward the housing supply rather than migration.

Torie Brown, the executive director of the Student Accommodation Council, mentions that while Labour has urged universities to construct more Australian student housing, state and local governments cause the most delays in the process.

“There is simply no reason a planning approval should take years.” 

A recent Property Council reported that the current pipeline for emerging PBSAs would not be able to match up to surging demands, inadvertently forcing students into illegal housing options.

About 8,000 student beds are expected to be built by 2026, but the council estimates about 84,000 beds would be needed to reduce the impact of international students in Australia.

Others, however, believe that fast-tracking PBSA real estate development will do little to combat this problem.

Ngaire Bogemann, the president of the National Union of Students, said, “What used to be a traditionally cheaper alternative is no longer that – the average rent [for PBSA] is $530 a week, often for the size of a shoebox, without tenant rights and protections.”

“We have a historic problem with the exploitation of international students in the housing market. If you want more student accommodation to be built, iron out issues in the sector, or have the government provide accommodation with rental caps.”

Expansion of Australian student housing also frequently faces opposition from non-residents. Lauren Sideris, a member of the Kensington Residents’ Group, said that the development was purely “profit-driven” and had a “huge visual impact issue.”

“These are tall towers with very small rooms – like sardine tins. You have a very, very small area in order to yield a great amount of apartment numbers that charge a very high rate.”. The comments by Lauren reflect a fair representation of the condition of the Australian student housing crisis.

TL;DR

The University of New South Wales faced opposition from the local council for its UNSW student housing project. The opposition emerged amid broader challenges worsened by new laws limiting international student numbers. Fast-tracking housing development clashes with concerns over affordability, student exploitation, and opposition from locals.

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