COVID-19: Student accommodation providers hopeful of swift recovery in international education
International student numbers have plummeted since the onset of the COVID-19 crisis, but student accommodation providers are hopeful Australia’s management of the pandemic will attract even more students once restrictions ease.
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Close to 2000 student accommodation beds are currently under construction in Adelaide, but plans for thousands more could be in doubt in the wake of the COVID-19 crisis.
One major developer has delayed plans to build the world’s tallest student housing tower between Grenfell St and Rundle Mall, but others are forging ahead in the hope of a swift recovery in the state’s international student economy.
Projects currently under construction include Wee Hur’s 817-bed development on Waymouth St, due for completion in November, while GSA recently started work on its 725-bed tower on North Tce.
However Hines Property, which secured planning approval for a 510-bed, 38-storey tower in 2018, has delayed the start of the project due to the COVID-19 pandemic.
“COVID-19 and in turn the international border restrictions have delayed what was an imminent start to construction of this project,” Hines managing director James Hines said.
“We remain committed to delivering this exciting project, and expect to announce a start date later in the year.
“As the recovery gains momentum, South Australia’s acknowledged global leadership in managing the impact of COVID-19 has the potential to increase Adelaide’s attraction as a university city, and see us winning a greater share of overseas students from interstate and international alternatives.”
The early shutdown of Australia’s borders and the repatriation of many international students back to home countries has seen occupancy across most student accommodation facilities decline, with operators reporting falls of between 20 per cent and 50 per cent.
While there are currently more than 38,000 international students in South Australia, ABS data reported a 25 per cent fall in international student arrivals in Australia in the three months to March.
Student housing operators remain hopeful the country’s management of the pandemic will appeal to international students once COVID-19 restrictions ease.
The country’s largest student accommodation operator, Scape Australia, manages the Atira and Urbanest facilities in Adelaide.
National marketing director Elaine Canny believes demand for student accommodation will bounce back when international borders reopen.
“We’re doing a lot of work behind the scenes, supporting the universities and lobbying the Government to get students back here for semester two,” she said.
“Given how well Australia has handled the pandemic, we’re seeing a lot of our overseas agents and teams reporting that Australia is becoming a more desirable place to come for many students who were perhaps considering universities in the US or UK.
“I think student accommodation in Australia is really in its infancy compared to markets like the UK, but I think it’s becoming better understood and people are seeing the benefits of a student-centric building, including the safety and extra services we provide.”
Others are also showing confidence.
Synergy Construct is currently building the Waymouth St and North Tce projects, and recently started work on Accord Property’s 367-bed development above the G & R Wills & Co warehouse on North Tce.
Operations director Craig Weaver expects demand for student housing to bounce back next year.
“Investors see South Australia as a safe place to invest and well-positioned in the student market nationally,” he said.
“We are aware of a number of upcoming future student housing projects – some of these have been delayed but we would expect these to regain momentum soon.
“Worst case, these would be postponed by either a half or full academic year, but we don’t expect them to be cancelled altogether.”