Adelaide's CBD shortfall in student accommodation after Adelaide University merger

A leading Adelaide businessman says the adaptive reuse of vacant city buildings could help ease a significant student bed shortage expected after the Adelaide University merger.

Repurposing vacant city buildings will help meet a shortage of 2500 student accommodation beds after the Adelaide University merger occurs, a leading businessman says.

JLL SA managing director Ben Parkinson believes the adaptive reuse of buildings has a role to play in shaping the city’s economy and preparing for more international students.

Speaking at an Adelaide Economic Development Agency luncheon this week, Mr Parkinson said the city’s ageing office buildings offered a good return on investment for redevelopment.

“We’ve got old office stock in Adelaide; there is no shying away from that, in fact, 53.5 per cent of office stock is considered secondary,” Mr Parkinson said.

JLL SA managing director Parkinson. Picture: Kelly Barnes

“Seventy-seven per cent of vacancies in the CBD are across just 17 per cent of buildings.

“So that says to me there is plenty of opportunity in that 17 per cent, whether that be a conversion to a more modern office... or student accommodation or a hotel.

“From a shortage perspective on student accommodation beds, our living sector team did an estimate based on the enrolments out to 2030 for the university merger and there will be a shortage of 2200-2500 ... beds in the Adelaide CBD.

“So that will be one to watch.”

AEDA general manager Greg Ratsch confirmed there had been increased interest in the city from purpose built student housing providers following news of the merger.

New Adelaide University logo. Picture: Supplied

“This interest has been driven by the post-Covid rise in student enrolments – lifting from 48,752 in 2023 to 53,331 in 2024 – and the intended increase in the number of students attending Adelaide University following the merger,” Mr Ratsch said. Adelaide University, a merger between the University of Adelaide and University of South Australia, will open in 2026 and target students from China, India, Kenya and Vietnam.

Adelaide University co-Vice Chancellors Professor Peter Hoj and Professor David Lloyd. Picture: Dean Martin

An Adelaide University spokeswoman said there had been “strong interest” from prospective students and they were “beginning toreceive international applications for 2026”.

“The early data, and liaison with our international study agency partners, indicates that international enrolments for Adelaide University’s first academic year are likely to align with our ambitions.”

StudyAdelaide chief executive Jane Johnston said there was a 10 per cent vacancy rate in purpose built student accommodation, so Adelaide was “well-placed ... to welcome more international students”.

“The Crown and Anchor site and other student accommodation proposals are going through the planning process and we expect student accommodation will further increase,” Ms Johnston said.