DCA pauses overseas student accommodation site in CBD

Student accommodation will be key to attracting an additional 10,000 overseas students in Darwin, but a key development that could house them has been delayed.

The Development Consent Authority is reviewing a proposal to build a 72-bed accommodation facility in Darwin’s CBD.

In what is seen as an unusual move, the DCA deferred the proposal for a second time at its most recent meeting.

The application is the first under a new rooming accommodation provision introduced into the NT Planning Scheme in 2020 which reduces mandated car-parking requirements.

The DCA deferred the proposal so the developers could provide further information to demonstrate how the project will be limited to students and associated academics.

The DCA also requires amended plans showing additional car-parking spaces and a drop-off zone as well as details of proposed share car arrangements.

The minutes from the DCA meeting show delegates were concerned about the number of carparks and also whether the facility would be used as student accommodation or a hotel.

The lower-levels of the nine-storey, 72 bed student accommodation facility planned for 7 Shepherd Street in Darwin's CBD. Picture: Supplied

At the hearing the applicant, Darwin-based Tomazos Group, developers of the Unilodge accommodation in Casuarina, referenced the need for affordable accommodation in the Darwin CBD.

They highlighted the potential impact of the Charles Darwin University CBD campus on population growth in the city.

“(The proponent) commended the inclusion of the rooming accommodation definition in the NTPS 2020 and noted the proposal for rooming accommodation is similar to co-living models in other jurisdictions and is designed for students,” the Development Consent Authority minutes said.

“The Authority noted that rooming accommodation as defined in the NTPS 2020 differs to the use of that term in other jurisdictions.

“The Authority considered the background information provided by the applicant and clarified that neither the demand for affordable accommodation nor the funding of such proposals are factors that inform the Authority’s decision making as they are not relevant elements of the NTPS 2020.

“The NTPS 2020 defines hotel-motel to mean premises primarily used for the short term accommodation of travellers.

“The use can include where ancillary, meeting and function rooms, food premises‐restaurant, a bar‐small, and recreation facilities, but does not include a bar-public, club, or nightclub entertainment venue.

Property Council NT executive director Ruth Palmer. Picture: Supplied

“The Authority noted that the definition refers to ‘travellers’ not tourists. While the NTPS 2020 does not include a definition for short term accommodation, such accommodation can potentially include occupancy of 3 or even 6 months in various contexts. Hotels commonly include such facilities as guest laundries, communal eating spaces etc.”

Although not present at the meeting, this publication understands Tomazos made a commitment to the DCA that the Shepherd Street premises would be exclusively student accommodation.

The proposal, if approved, will dovetail with development of the new CBD campus, which is expected to open next year.

The Tomazos Group has a number of construction credits including Darwin’s Pinnacle Apartments, the Tech1 building, Palmerston Waterpark and the Kube building in Darwin.

Darwin’s ratio of purpose-built student accommodation of 33 students per bed is the nation’s highest and 0.6 per cent rental vacancy rate is Australia’s lowest.

Late last year NT Property Council executive director Ruth Palmer said the government would need to act if it is to achieve its target of an additional 10,000 overseas students in Darwin.

Unilodge student accommodation in Casuarina. Picture: Supplied

“The CBD campus is well and truly under way, with doors set to open to students in 2024, however, there is currently zero accommodation options for students on the table,” Ms Palmer said.

“We run this real risk of students choosing to study elsewhere if there are limited accommodation options for them when they choose to enrol at CDU. The problem of lack of student accommodation is a Territory issue, not an education provider issue.

“The Northern Territory government provides a great deal of infrastructure for other industries.

“It needs to do the same for the growing education industry.

Student accommodation council executive director Torie Brown said there is a “dire need” for more student acommodation in the Territory.

The Demographics Group cofounder Simon Kuestenmacher speaks at the NT News' inaugural Future Northern Territory lunch. Picture: (A)manda Parkinson

The 300-bed Unilodge is the only dedicated student accommodation in the Territory.

“Purpose-built student accommodation plays a vital role in releasing pressure on the housing market because students living in these buildings aren’t competing with mums and dads for private rentals,” she said.

The NT News’ inaugural Future Northern Territory - Towards 2030 event identified student housing, particularly for international students, as a key element towards growing the Territory’s population.

Property experts have warned plans to grow the Territory’s overseas student population by 10,000 in the next five years would be dragged down by a lack of student housing.

Demographer Simon Kuestenmacher said international students and the economic injection they delivered to a city was critical to the NT government’s $40bn economy goal.

“International students are financially extremely lucrative so any international student helps and any further investment into enabling us to attract international students is welcome and it amps up the population base, which is very important in order to get to that $40bn target,” Mr Kuestenmacher said.

Originally published as DCA pauses overseas student accommodation site in CBD