If you’re in Brisbane, take a moment to look outside your window, hear that hammer in the distance? The drone of a concrete pour? That’s the sound of construction, specifically the construction of student accommodation and it’s going to be here for a while so you might want to get a quote for double glazing.
But what’s driving this student construction boom?
3) Developer Attention
For years, Brisbane and all other Australian cities have had a desperate need for student accommodation. Estimates indicate that Brisbane has approximately 1 purpose built, professionally managed bed for every 14 students. Meanwhile, international markets in the United States and London have sustainable and prospering student accommodation markets with supply as high as one bedroom for every 3 or 4 students. These numbers show the student accommodation market in Brisbane and other Australian cities have a long way to go before supply reaches a reasonable level.
Brisbane City Council (BCC) realized this demand issue needed addressing if it wanted to market Brisbane to International students and introduced an incentive for development of purpose built student accommodation. So in 2014 BCC announced the ‘Brisbane City Council – Applied Adopted Infrastructure Charges Resolution (No. 4)’ which offered reduced infrastructure charges for student accommodation developments that met a series of requirements.
3) Developer Attention
Grab that student over there and they’ll tell you, I hope, that 1+2=3. That’s certainly the case here and once developers did the math the demand and the savings from the council incentives certainly added up. After an initial 12 months of silence while Development Applications were submitted and processed the streets were soon awash with scaffolding trucks and tradies building the current wave of Student Accommodation in Brisbane.
Current projections taking into account existing builds and development applications still show there is a long way to go to reach the market maturity seen elsewhere of 1 bed to 3-4 students. As such we expect to see a continuation of this rate of development over the next 5-10 years.
As at writing the council incentives for infrastructure reductions are still available though the scheme is set to end on the 30th June 2017. For more information contact Hive Student Accommodation on 1300 882 326.