NT Property Council Ruth Palmer issues urgent call for student housing

A lack of housing could spell the end of the Territory’s ambitious plan to attract 10,000 students to the Top End. The NT Property Council has issued an urgent plea to fix the impending disaster.

The NT News hosted its inaugural Future Northern Territory - Towards 2030 event in November. During the panel Q and A, almost 100 questions were sent through and we weren’t able to answer all of them, but we are now.

What is happening housing wise for the international students to be housed at the new CBD campus?

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

A new report by the Property Council of Australia’s student accommodation council reveals there is only one purpose-built student accommodation facility in the Territory, with no new infrastructure in the pipeline.

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.

Student Accommodation Council executive director Torie Brown said with the NT’s extremely tight rental market, there was a “dire need” for more student accommodation in the Territory.

The only student accommodation is a 300-bed facility on Dripstone Rd near Casuarina Square.

Inside the Unilodge student accommodation in Darwin

“In other states, we are seeing high numbers of domestic students living in purpose-built accommodation because of tight residential rental markets and a superior product offering, but in Darwin there simply isn’t the pipeline of beds to support this,” Ms Brown said.

“With rental markets as tight as they are, we are seeing more and more Australian students moving into student accommodation, with the report revealing 26 per cent of all purpose-built student accommodation residents are domestic students, just one percentage point behind students from China at 27 per cent.

“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.”

NT Property Council executive director Ruth Palmer said if the government was to achieve its ambition of an extra 10,000 students living and studying in the NT, it must encourage new student accommodation developments to ensure young people have somewhere to live.

“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.

Darwin needs more student accommodation like the Unilodge facility.

“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.

“Right now, we have marketing campaigns to attract students here.

“However, the first thing they would look for is accommodation options available to them, and we know that international students often seek out accommodation in urbanised environments.

“This would be an enormous blow to the Territory’s economy and does not align with the government’s mission to reach a $40bn economy by 2030.

“CDU is investing a massive amount into the City campus – it can’t be expected to solve all the challenges of student accommodation.

“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.

Charles Darwin University vice-Chancellor Scott Bowman hopes 6000 more overseas students come to the NT in five years. Picture: Amanda Parkinson

“We need to ensure a strong pipeline of new purpose-built student accommodation assets to ensure our vital international education sector can continue to grow, and we can continue to safely house students,” she said.

Charles Darwin University vice-chancellor Scott Bowman indicated he wanted an additional 6000 foreign university students in Darwin within five years.

A CDU spokeswoman said the university was seeking the development of new, purpose-built student accommodation or the provision of student accommodation from suitable existing or redeveloped Darwin buildings.

“CDU is looking to expand its current student accommodation options over the coming years to better cater to the needs of the student community in the Territory,” she said.

“As we see student numbers increase, particularly from international and domestic students, demand for student accommodation will only continue, so it’s crucial that we see more affordable and accessible housing options made available for students.

“The new Education and Community Precinct in Cavenagh Street, which is due to be completed in 2024, will attract additional international and domestic students, who need suitable accommodation, and the demand for housing in the Territory will only continue to rise.”

The construction site for Charles Darwin University's new city campus. Picture: (A)manda Parkinson

This aligns with a target set by International Education Minister Ngaree Ah Kit, who wants 10,000 international students including trainees in the Territory.

Chief Minister Natasha Fyles said the international education sector was worth $167m to the NT economy, making it the Territory’s second biggest service export.

“This year we opened grants up to assist international students to live in the Territory by subsidising their accommodation costs at Uni Lodge or International House Darwin, located on campus at Charles Darwin University,” Ms Fyles said.

“We want to promote development, this is why the NT government is committed to a policy of 50 per cent infill, 50 per cent greenfield development.

“The NT government is also committed to the Compact Urban Growth Policy, which is aimed at the efficient use of land, as well as services and infrastructure that support land use.

“The Property Council recently met with the Minister for Infrastructure, Planning and Logistics and raised the issue of student accommodation.

“The minister has committed to following up on this to ensure the Territory is best placed to meet the demand for accommodation for international students.

“Land development is a key priority of the Territory government – a Request for Proposals for the development of over 500 lots at Holtze was recently launched, with significant interest from developers.”

Originally published as NT Property Council Ruth Palmer issues urgent call for student housing