Monday 6 March 2023
MEDIA RELEASE
REDUCE COSTS AND EXPEDITE DEVELOPMENT TO ACCELERATE STUDENT ACCOMMODATION
Whichever party forms Government in NSW this month must urgently expedite the development of purpose-built student accommodation (PBSA) to ensure the beds needed to safely house returning international students are brought to market quickly, the Student Accommodation Council has warned.
The peak industry body for PBSA said cumbersome planning processes and foreign-investor land tax surcharges hinder the construction of new assets and discourage private investment in the critical housing sector.
There are currently 16,500 PBSA beds in NSW, which is a ratio of 31 students per bed across the state. In comparison, Victoria has 17 students per PBSA bed and Queensland has 14.
“Right now, students are facing a perfect storm – the NSW rental market is incredibly tight, student accommodation buildings are at capacity, and more and more international students are returning to this over-heated market daily,” Student Accommodation Council Executive Director Torie Brown said.
“At the moment, it takes around four years in a best-case scenario for a PBSA developer to go from land acquisition to students moving in. We need to increase the supply of student accommodation beds coming to market far quicker than that.
“The NSW Government already has a precedent for expedited planning approvals for build-to-rent, we’re simply asking that PBSA be treated in the same way,” she said.
Purpose-built student accommodation provides professionally-managed, regulated, safe and vibrant housing options for students close to where they study and work. Adding more PBSA beds to the market will allow for a greater spectrum of room types that suit a range of student budgets and put downward pressure on rental costs.
“Investors have seen forward-thinking authorities in other major cities around the world take action to promote the development of purpose-built student accommodation to combat housing shortages and provide high-quality accommodation quickly,” Student Accommodation Council President and Scape CEO Anouk Darling said.
“We strongly encourage state governments and local councils to work with the sector to address the housing shortage facing students, before we risk Australia’s valuable reputation as a preferred destination for international education,” she said.
Ms Brown said 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 said.
