Adelaide: Student Accommodation Demand and Supply Analysis

Adelaide: Student Accommodation Demand and Supply Analysis

Adelaide: Student Accommodation Demand and Supply Analysis

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | i May 2016 Adelaide: Student Accommodation Demand and Supply Analysis Prepared for the Government of South Australia – Department of State Development

Adelaide: Student Accommodation Demand and Supply Analysis

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | i Page | i List of Contents Executive Summary . . vii 1 Introduction . . 12 2 Adelaide Overview . . 13 2.1 Overview . . 13 2.1 Demographics . . 14 2.2 Adelaide Student Demographics Summary . . 14 3 Adelaide Universities Overview . . 15 3.1 University of South Australia .

15 3.2 University of South Australia – City East and West Campuses . . 17 3.3 University of South Australia – Mawson Lakes Campus . . 21 3.4 University of Adelaide . . 24 3.5 University of Adelaide – North Terrace Campus . . 26 3.6 Flinders University . . 29 3.7 Flinders University – Bedford Park Campus . . 30 3.8 Full-time Student Trends 2010 – 2014 . . 34 4 Supply Considerations – Adelaide CBD . . 36 4.1 Types of Accommodation – Where do students live . . 36 4.2 Residential Colleges / University Accommodation . . 36 4.3 Other PBSA and Other Housing Options . . 37 4.4 Existing Student Accommodation .

38 4.5 Pricing . . 39 5 Supply Considerations – Mawson Lakes . . 42 5.1 Types of Accommodation – Where do students live . . 42 5.2 University Accommodation . . 42 5.3 Other PBSA and Other Housing Options . . 42 5.4 Existing Student Accommodation . . 42 5.5 Pricing . . 43 6 Supply Considerations – Bedford Park . . 44 6.1 Types of Accommodation – Where do students live . . 44 6.2 University Accommodation . . 44 6.3 Other PBSA and Other Housing Options . . 44 6.4 Existing Student Accommodation . . 45 6.5 Pricing . . 45 7 Adelaide Rental Market Overview . . 46 7.1 Adelaide CBD and North Adelaide Rental Market .

46 7.2 Mawson Lakes and Surrounding Suburbs Rental Market . . 49

Adelaide: Student Accommodation Demand and Supply Analysis

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | ii The Government of South Australia, Department of State Development: Student Accommodation Demand Study 7.3 Bedford Park and Surrounding Suburbs Rental Market . . 52 7.4 Student Preferences . . 55 8 Occupancy Rates in PBSA . . 61 9 Development Pipeline . . 62 10 Top Ten Private Operators . . 63 11 University Benchmark Profiles . . 65 11.1 Existing Supply of Accommodation – Adelaide Universities . . 65 12 PBSA Demand . . 66 12.1 Current and Future Demand Levels . . 66 12.2 Initial Demand Forecasts . . 66 12.3 Summary of initial demand forecasting .

72 12.4 Gap analysis forecast . . 72 12.5 Aspirational Forecasts . . 79 13 Key Constraints for the Development of Additional PBSA in Adelaide . . 81 14 Options to deliver accommodation at $200-$250 per week . . 84 14.1 Overview . . 84 14.2 University Participation . . 84 14.3 Major mixed use developments . . 84 14.4 Tax incentives . . 85 14.5 Planning policy and guidance - examples . . 86 14.6 Planning legislation in the UK . . 88 14.7 Specific tenancy legislation for students . . 89 14.8 Private accommodation to suit the student market . . 90 14.9 Student Accommodation Providers Accreditation .

90 14.10 Accreditation of Letting Agents . . 93

Adelaide: Student Accommodation Demand and Supply Analysis

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | iii The Government of South Australia, Department of State Development: Student Accommodation Demand Study List of Tables Table 1: Summary of Full Time Students in Adelaide, 2014 . 14 Table 2: University of South Australia, Number of Student Enrolments, 2014 . 15 Table 3: Breakdown of International Students by Campus . 16 Table 4: University of South Australia, Top Countries of Origin 2015 . 16 Table 5: University of South Australia – City East and West Campus Country of Origin Trends . 20 Table 6: University of South Australia – Mawson Lakes Country of Origin Trends .

23 Table 7: University of Adelaide, Number of Student Enrolments, 2014 . 24 Table 8: University of Adelaide, Top Countries of Origin 2014 . 25 Table 9: University of Adelaide – North Terrace Campus Country of Origin Trends . 28 Table 10: Flinders University, Number of Student Enrolments, 2014 . 29 Table 11: Flinders University – Bedford Park Campus Country of Origin Trends . 33 Table 12: Adelaide CBD and North Adelaide Supply Analysis . 38 Table 13: Summary of University Accommodation & Residential Colleges Rents at Adelaide CBD & North Adelaide, 2016.39 Table 14: Summary of existing self-catered PBSA Rents in proximity of Adelaide CBD and North Adelaide, 2016 .

40 Table 15: UniSA Mawson Lakes Campus Supply Analysis . 43 Table 16: Summary of existing PBSA Rents in proximity to UniSA Mawson Lakes, 2016 . 43 Table 17: Bedford Park Supply Analysis . 45 Table 18: Summary of existing University Accommodation Rents at Flinders University Bedford Park Campus, 2016 . 45 Table 19: Adelaide CBD and North Adelaide Market Attributes, 2011 . 47 Table 20: Adelaide CBD and North Adelaide Suburb Profiles, December 2015 . 47 Table 21: Adelaide CBD and North Adelaide Rental Analysis . 48 Table 22: Mawson Lakes Statistics . 50 Table 23: Mawson Lakes Rental Analysis .

51 Table 24: Bedford Park Statistics . 53 Table 25: Bedford Park Rental Analysis . 54 Table 26: Summary of Local Government Areas based on University Location . 55 Table 27: Summary of Commercial Accommodation Providers . 63 Table 28: Summary of Adelaide Universities Existing Student Accommodation Analysis . 65 Table 29: Summary of Comparable Universities Existing Student Accommodation Analysis . 65 Table 30: Forecast demand propensity for PBSA . 66 Table 31: Forecast enrolment growth table . 67 Table 32: Demand Projection Analysis – Adelaide CBD University Campuses . 68 Table 33: Demand Projection Analysis – The University of South Australia Mawson Lakes Campus .

69 Table 34: Demand Projection Analysis – Flinders University Bedford Park Campus . 70 Table 35: Low Propensity Forecast Summary – Full-time Students per Bed . 71 Table 36: Mid Propensity Forecast Summary . 71 Table 37: High Propensity Forecast Summary . 72 Table 38: Supply Gap Analysis – Adelaide CBD Campuses . 73

Adelaide: Student Accommodation Demand and Supply Analysis

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | iv The Government of South Australia, Department of State Development: Student Accommodation Demand Study Table 39: Supply Gap Analysis –University of South Australia Mawson Lakes Campus . 74 Table 40: Supply Gap Analysis – Flinders University Bedford Park Campus . 75 Table 41: Supply Gap Analysis – Total Universities . 76 Table 42: Demand Projection Analysis – Aspirational Growth in International Students and High Propensity . 80 Table 43: Land Tax Comparisons, Mainland States, 2016 . 83 Table 44: Qualmark Star Grade Definitions .

91 Table 45: Qualmark Assessment Criteria . 91

Adelaide: Student Accommodation Demand and Supply Analysis

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | v The Government of South Australia, Department of State Development: Student Accommodation Demand Study List of Figures Figure 1: University of South Australia City East Campus Map . 19 Figure 2: University of South Australia City West Campus Map . 19 Figure 3: University of South Australia Mawson Lakes Campus Map . 22 Figure 4: University of Adelaide North Terrace campus Map . 27 Figure 5: Tonsley Site Map . 31 Figure 6: Flinders University Bedford Park Campus Map . 32 Figure 7: The University of South Australia Full-time Student Numbers 2010 – 2014 .

34 Figure 8: The University of Adelaide Full-time Student Numbers 2010 – 2014 . 34 Figure 9: Flinders University Full-time Student Numbers 2010 – 2014 . 35 Figure 10: Adelaide Student Population LGA Analysis 2006 . 56 Figure 11: Adelaide Student Population LGA Analysis 2009 . 57 Figure 12: Adelaide Student Population LGA Analysis 2011 . 58 Figure 13: Adelaide Student Population LGA Analysis 2014 . 59 Figure 14: Adelaide Student Population LGA Analysis 2015 . 60 Figure 15: Adelaide CBD Campuses Gap Analysis of Low and Mid Scenarios . 77 Figure 16: University of South Australia – Mawson Lakes Campus Gap Analysis of Low and Mid Scenarios .

78 Figure 17: Flinders University – Bedford Park Campus Gap Analysis of Low and Mid Scenarios . 79

Adelaide: Student Accommodation Demand and Supply Analysis

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | vi The Government of South Australia, Department of State Development: Student Accommodation Demand Study Disclaimer The material contained in this report was provided by JLL to the party to whom it is addressed strictly for the specific purpose to which it refers and no responsibility is accepted to any third party. Neither JLL nor any of its associates have any other interests (whether pecuniary or not and whether direct or indirect) or any association or relationships with any of its associates that might reasonably be expected to be or have been capable of influencing JLL in providing this report.

Whilst the material contained in the report has been prepared in good faith and with due care by JLL, no representations or warranties are made (express or implied) as to the accuracy of the whole or any part of the report. JLL, its officers, employees, subcontractors and agents shall not be liable (except to the extent that liability under statute or by operation of law cannot be excluded) for any loss, liability, damages or expense suffered by any party resulting from their use of this report. If a projection has been made in respect of future demand, business trends, property prices, rentals and projected take up rates, such a projection is an estimate only and represents only one possible result therefore should at best be regarded as an indicative assessment of possibilities rather than absolute certainties.

The process of making forward projections of such key elements involves assumptions about a considerable number of variables that are acutely sensitive to changing conditions and variations, and any one of which may significantly affect the resulting projections. This must be kept in mind whenever such projections are considered.

Adelaide: Student Accommodation Demand and Supply Analysis

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | vii Page | vii Executive Summary A key economic priority of the state government is to increase the number of international students studying in South Australia from 28,300 (2013 numbers) to 35,500 by 2017. Increased international students will place increased demand for quality and affordability student accommodation in close proximity to the major higher education institutions. Existing Supply Student accommodation is concentrated in Adelaide CBD and North Adelaide, within close proximity of two of Adelaide’s three major universities (University of Adelaide and University of SA (UniSA)).

There are also concentrations of student accommodation near UniSA’s Mawson Lakes campus and near Flinders University at Bedford Park. These three markets are the focus of this report.

The main types of purpose built student accommodation (PBSA) are:  Residential Colleges;  Purpose Built Student Accommodation;  University managed / leased accommodation; Students also access a range of other accommodation options, including private rental accommodation, serviced apartments, homestays, backpackers’ hostels and guesthouses. Supply / Demand Relationship The ratio of full-time students to total student accommodation rooms at the three main university locations in Adelaide is compared to a selective group of universities across Australia. The supply of PBSA in Adelaide CBD and Mawson Lakes is relatively high compared to the University of QLD, Melbourne and Sydney.

FT Students Total Rooms FT Students Per Bed University of South Australia and University of Adelaide CBD Campuses 33,713 3,765 9.0 University of South Australia Mawson Lakes 3,714 386 9.6 Flinders University Bedford Park 14,976 561 26.7 ANU (Canberra) 15,000 4,432 3.4 University of Melbourne (Parkville) 43,000 2,533 17.0 University of QLD (St Lucia) 42,000 2,871 14.6 University of Sydney 43,500 2,666 16.3 Rental Markets The existing private rental markets in each of the three University locations highlights the higher median house and unit prices in the Adelaide CBD and North Adelaide compared with Mawson Lakes and Bedford Park.

As at December 2015, the median asking rents for units in each suburb was:  Adelaide: $430 per week;  North Adelaide: $380 per week;  Mawson Lakes: $325 per week;

Adelaide: Student Accommodation Demand and Supply Analysis

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | viii  Bedford Park: $283 per week. Occupancy Rates for PBSA Occupancy rates of PBSA across Adelaide tend to run at or near 100% occupancy. Similar high occupancy levels are achieved by managers of student lettings in the private rental market. We understand some of the residential colleges are not operating at 100% occupancy. There is a preference for accommodation with ensuite bathroom rather than shared facilities.

A recent development project at Aquinas College has increased the number of rooms with ensuites.

Development Pipeline Main developments in the pipeline are:  228 - 231 North Terrace, Adelaide: a 689 bed facility for Urbanest has been granted approval and is expected to be completed for Semester 1 in 2018;  231-243 Waymouth Street, Adelaide: A proposed development by BlueSky comprising 415 student beds;  UniSA City West campus, Adelaide: UniSA has run a tender process to select a development partner to build and operate approximately 300 bedrooms adjacent to its City West campus. Demand Scenarios for PBSA JLL has undertaken four demand scenarios as outlined below. The scenarios are based on take-up rates for PBSA (propensity) for both domestic and international students and growth rates in student numbers.

Forecasts are provided to 2020 and have been run for each of the three campus locations. Propensity ratios in each scenario is higher than existing ratios, which reflects the fact that supply of quality PBSA is quite constrained and enjoys 100% occupancy.

Domestic Students propensity for PBSA Domestic Students forecast growth International Students propensity for PBSA International Students forecast growth Scenarios Low forecast 5% 3.00% 40% 0.0% Mid forecast 10% 4.26% 50% 3.5% High forecast 15% 5.11% 60% 7.0% Aspirational forecast 15% 5.11% 60% 12.0% Adelaide CBD Campuses  Based on the low propensity scenario there could be demand for an additional 562 beds by 2020 (equivalent to one large development), resulting in continued supply levels of 10.3 FT students per bed. This takes into account the completion of Urbanest’s new student accommodation development on North Terrace in 2018.

Other scenarios are more aspirational in terms of propensity and require higher growth rates of both domestic and international students as detailed above: o Mid forecast scenario would result in a supply gap of 4,167 beds by 2020; o High forecast scenario would result in a supply gap of 8,527 beds by 2020;

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | ix o Aspirational forecast scenario would result in a supply gap of 11,032 beds by 2020.

University of South Australia Mawson Lakes Campus  The supply gap for the four scenarios modelled are as follows: o Low forecast scenario would result in a supply gap of 142 beds by 2020; o Mid forecast scenario would result in a supply gap of 529 beds by 2020; o High forecast scenario would result in a supply gap of 994 beds by 2020; o Aspirational forecast scenario would result in a supply gap of 1,249 beds by 2020. Flinders University Bedford Park Campus  The supply gap for the four scenarios modelled are as follows: o Low forecast scenario would result in a supply gap of 1,008 beds by 2020; o Mid forecast scenario would result in a supply gap of 2,326 beds by 2020; o High forecast scenario would result in a supply gap of 3,852 beds by 2020; o Aspirational forecast scenario would result in a supply gap of 4,415 beds by 2020.

Constraints to developing PBSA in Adelaide  Demand - The ability of Adelaide universities to continue to attract, and grow student population in Adelaide will largely determine demand. Increased propensity for PBSA by both domestic and international students will also grow demand.

Availability of land – This is not considered a major constraint at Mawson Lakes, Flinders University or even in the Adelaide CBD where a wide variety of other land uses compete for development sites. The Adelaide CBD is relatively under-developed compared to eastern seaboard cities. The student housing sector has successfully sourced premium sites in the CBD for student housing over the past decade. Numerous student accommodation projects have been proposed, granted approval and have not progressed. This implies that the physical constraints have not been a major limiting factor in the delivery of PBSA.

Feasibility - Feasibility is impacted by rental levels, land costs, build costs and end value. o Rental levels for high quality PBSA in Adelaide are lower than headline rents in other state capital cities across Australia. The availability of a large supply of private residential dwellings at competitive rents creates a ceiling for rental levels and puts pressure on feasibility. o Build costs in the last 12 months have risen across many locations in Australia. This has put further pressure on the feasibility of delivering new PBSA. Alternative building methods, such as modular construction, may be one way of reducing build costs.

o Investment appetite for the asset class impacts feasibility. As the market matures and investor appetite grows, yields are expected to tighten as has occurred in international markets. This increases the feasibility of delivering new accommodation.

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | x Planning Restrictions  Planning restrictions do not appear to be a major impediment to delivering PBSA in the Adelaide CBD or other markets. Overall, the planning rules in the Adelaide CBD are reasonably encouraging for student accommodation. While they do not provide additional development density above other land uses as a mean of encouraging student accommodation, the specific guidelines for student accommodation provide more leniency compared with traditional residential apartment development in terms or unit size (per bedroom), private open space, storage, and car parking.

Likewise we do not consider planning rules near either UniSA Mawson Lake or Flinders University Bedford Park restrict opportunities.

Land Tax  South Australia has the highest rate of land tax of the mainland states. Compared to the other four mainland states, SA land tax costs are:  Between $75,487 and $86,112 per annum higher on an assessed land value of $5 million;  Between $158,612 and $166,087 per annum higher on an assessed land value of $10 million; Providing Affordable Student Accommodation: Options JLL has reviewed the pricing of existing student accommodation as well as private rental accommodation access by students in each location near Adelaide’s main university campuses. There are opportunities for self-catering rental accommodation in each market within the price point of $200- $250 per student per week, although we acknowledge that quality PBSA with ensuite facilities and including utilities is above this price point in the Adelaide CBD.

Options to deliver more affordable accommodation include the following:  Participation by the Universities – this may include providing land on campus at a discounted rate to enable a more affordable product to be developed;  Tax incentives – including both state and local government rebates and concessions. The main two concessions identified are land tax concessions and rate rebates. Land tax concessions apply in some markets for education institutions and this may be interpreted to include student accommodation provided by education providers on a not-for-profit basis. The residential colleges in North Adelaide already qualify for rate rebates of 75%.

Direct involvement of the education providers appears to be required in order to qualify for this rebate;  Infrastructure Charges – These costs can be significant and there is the potential for state or local government to be pro-active and reduce the costs for certain developments that it wants to encourage. In SA, the main infrastructure charge is payable for the open space contribution, Assessed value of land State Land Tax Difference from SA Land Tax Difference from SA SA 156,087 n.a. 341,087 n.a.

NSW 80,600 75,487 180,600 160,487 VIC 69,975 86,112 182,475 158,612 QLD 75,000 81,087 175,000 166,087 WA 73,130 82,957 180,130 160,957 $5 million $10 million

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | xi amounting to $6,488 per additional title created. If individual units within a student housing development are strata titled, then an open space fee of $6,488 will be payable per unit;  Planning policy – Particularly relating to minimum sizes of units.

The City of Adelaide’s Development Plan does not quantify the minimum sizes for student accommodation units but recognises that student accommodation is different and may not require quite the same unit size as private dwelling units; Current tenancy agreements and boarding house arrangements Operators and education providers consider these are not suited to student accommodation, offer limited protection and need to be addressed.

One of the issues related to the very broad range of accommodation that students could potential access, including PBSA (private, university managed, residential colleges, self-catered, fully-catered), student hostels, fully catered home stays, boarding houses, lodging houses, hostels, private rental accommodation, and shared rental accommodation). Most legislation includes minimum standards and protection mechanisms for tenants in general, but this is not based on the status of the tenant. It more likely based on the type of accommodation offered. The proliferation of rental websites aimed at international students that potentially channel students away from university advertised and reputable student accommodation providers / managers.

This potentially leads to accommodation that may fall outside not of the jurisdiction of SACAT, the Local Tenancies Tribunal, leading to accommodation with “flexible” contract arrangements that are not secured under standard tenancy agreements. Fixing this “loophole” appears to be the main area that needs addressing in tenancy agreements.

Private accommodation to suit the student market Students in PBSA have a preference for ensuite accommodation. Most PBSA provided by Urbanest has ensuites. Private accommodation that provides shared accommodation in say three bedroom units, each with an ensuite, may not only suit the student market, but be deliverable within the price point of $200-$250 per person per week. Student Accommodation Accreditation This would provide consistency in standards and is particularly relevant in the private rental sector. The recently established South Australian Student Accommodation Association (SASAA) has been promoting accreditation and has drafted a framework for providers.

This follows similar accreditation systems in other countries. Such a system would provide greater certainty for students that their chosen accommodation will be properly managed and meet minimum standards.

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 12 Page | 12 1 Introduction JLL has been instructed by the Government of South Australia, Department of State Development to assist in the preparation of a student accommodation demand and supply study. The Government of South Australia has recently released an “Economics Priorities” report outlining the importance of attracting an increased number of international students studying and living within the state of South Australia.

The report recognises the need to grow jobs through opportunities arising from the field of applied research and innovation at a University level. The objectives directly relating to international students are as follows:  By 2017 to establish an accommodation offer guarantee to new international students studying at South Australia’s public universities;  To increase the number of international students studying in South Australia from 28,300 (2013 numbers) to 35,500 by 2017; and  To encourage better coordination of services to meet the needs of an increasing student population, such as accommodation, employment opportunities and support services within 12 months.

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 13 2 Adelaide Overview 2.1 Overview Adelaide is the capital city of South Australia and is the fifth largest city in Australia, with a population of circa 1.3 million (77% of South Australia’s population). The Adelaide Central Business District (CBD) is the heart of South Australia’s government and commercial sectors bounded by North, East, South and West Terrace. The main education precinct is located within the Adelaide CBD and fronting North Terrace.

Within this precinct are the University of Adelaide, the City West and City East campuses of the University of South Australia (UniSA), TAFE SA, a number of colleges and other educational providers. There is also a concentration of retail and leisure activities focussed at the student market. The existing student accommodation in the immediate locality is provided by a number of private sector operators. However, the existing accommodation within this locality is not all purpose built and varies significantly in quality of accommodation and services.

Outside the CBD, UniSA has a campus in the Mawson Lakes area 15 kilometres north of the CBD and Flinders University has a campus at Bedford Park 12 kilometres south of the CBD. The following map identifies the agreed study areas for this report within Adelaide. Map 1: Location Map Source: Google Maps

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 14 2.1 Demographics The following demographic data is based on the 2011 Census:  Adelaide has a population of 1,225,235 people;  Median age of the population is 39 years;  Average of 1.8 children per family;  More than 30% of Adelaide residents are born overseas;  Most people in Adelaide live in houses (89%) rather than apartments;  About 67.9% of Adelaide residents owned their dwelling fully or with a mortgage, the reminder rent or occupy under other tenure;  69.5% of Adelaide residents travel to work by car and only 8.5% use public transport;  Median household income is approximately $2,110 per week;  Median mortgage repayments are approximately $357 per week;  Median weekly rent is approximately $250; The unemployment rate of Greater Adelaide in December 2015 was 7.2%.

2.2 Adelaide Student Demographics Summary The number of full-time higher education students studying in Adelaide was 65,516 in 2014 based on the latest available Australian Government Department of Education statistical data. The majority of students study at three main Adelaide based universities: UniSA, University of Adelaide and Flinders University. The rest of the student population study at other private providers of higher education, including a range of colleges and institutes.

Table 1: Summary of Full Time Students in Adelaide, 2014 Providers Full-time Students University of South Australia 21,788 University of Adelaide 21,531 Flinders University* 16,505 Private Providers 5,692 Total: 65,516 Commencing international students in 2014 - onshore 7,635 Commencing international students in 2014 - offshore 2,150 Source: Australian Government Department of Education 2014 data, JLL research. *Figures for Flinders University include students outside of the CBD at Bedford Park.

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2016. All Rights Reserved Page | 15 3 Adelaide Universities Overview 3.1 University of South Australia The University of South Australia (UniSA) is the largest University in the state of South Australia, with a strong reputation for excellence across a wide range of subjects in business, law, education, arts and social sciences, health sciences, information technology, engineering and the environment.

UniSA has two City campuses, East and West (both located towards the northern fringe of the CBD) and four other regional campuses. The following facts highlight the UniSA student demographics:  International / domestic students 20% / 80%  On campus / off campus students 63% / 37%  Domestic undergraduate / postgraduate students 79% / 21%  Domestic full-time / parttime domestic students 65% / 35%  International undergraduate / postgraduate students 67% / 33%  International full-time / parttime international students 80% / 20% The table below shows the number of domestic and overseas students enrolled into UniSA and split between mode of attendance (internal, external and multi-modal), type of attendance (full/part-time) and course level (undergraduate, postgraduate, non-award/enabling courses).

Table 2: University of South Australia, Number of Student Enrolments, 2014 Internal External / Multi-modal Total Full-time Part-time Full-time Part-time Domestic Undergraduate 10,191 2,268 4,306 2,795 19,560 Postgraduate 1,031 902 545 2,666 5,144 Non-Award/Enabling 525 144 206 122 997 Total 11,747 3,314 5,057 5,583 25,701 Overseas Undergraduate 2,811 685 496 108 4,100 Postgraduate 1,228 313 329 114 1,984 Non-Award/Enabling 112 56 8 5 181 Total 4,151 1,054 833 227 6,265 Total 15,898 4,368 5,890 5,810 31,966 Source: Department of Education Statistics Data Cube (uCube)

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC.

2016. All Rights Reserved Page | 16 The Table below provides a breakdown of on-campus international full and part time students studying by Campus. The Whyalla and Mount Gambier Campus do not have any international students. City West Campus is home to the largest number of international students (2,939), with Mawson Lakes holding the largest percentage of international students (35%). Overall the numbers provided to us by the University of South Australia’s Facilities Management Unit suggest that international students make up 22% of total students studying at the University.

Table 3: Breakdown of International Students by Campus Campus Total Full-time and Part-time Students International Full-time and Parttime Students Percentage of International Students City West Campus 9,210 2,939 32% City East Campus 6,940 1,188 17% Magill Campus 6,407 580 9% Mawson Lakes Campus 3,490 1,210 35% Whyalla Campus 242 0 0% Mount Gambier 47 0 0% 26,336 5,917 22% Source: Facilities Management Unit, University of South Australia Further analysis of the international students studying at the University of South Australia as detailed below indicates a strong representation from Asian countries, reasonably consistent with overall trends for international students across Australia 1 .

Top Countries of Origin Table 4: University of South Australia, Top Countries of Origin 2015 Country Students Percentage of total international students: 5,917 China (Excl SARS and Taiwan) 2,276 38.46% Other* 1,038 17.54% Malaysia 737 12.45% Hong Kong (SAR of China) 524 8.85% India 437 7.39% Vietnam 301 5.09% Saudi Arabia 153 2.58% South Korea 125 2.12% Brazil 123 2.08% Kenya 110 1.86% Philippines 93 1.58% Total: 5,917 100% Source: Facilities Management Unit, University of South Australia *Other includes all other countries not identified in the table 1 Page 7 – JLL Australian Student Accommodation Market Update 2015

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 17 Page | 17 3.2 University of South Australia – City East and West Campuses Courses and Use Students at UniSA’s City East campus study:  Construction Management;  Geographic Information Systems;  Health Sciences;  Nursing and Midwifery;  Planning and Geoinformatics;  Pharmacy and Medical Sciences;  Physiotherapy;  Podiatry;  Population Health; and  Surveying.

Students at UniSA’s City West campus study:  Arts;  Architecture and Design;  Business;  Commerce;  Law; and  Management.

Location UniSA’s two main campuses, City East and City West, are situated in Adelaide’s Central Business district. City East campus is located on the corner of North Terrace and Frome Road, adjacent to the University of Adelaide. The campus is situated opposite Royal Adelaide Hospital and has a focus on Health and Biomedical research including Health Sciences, Nursing and Midwifery, Pharmacy and Medical Sciences and Population Health. The State’s only Podiatry, Pharmacy and Medical Radiation programs are also offered by UniSA’s City East campus.

City West campus is located on the corner of North Terrace and Morphett Street and is largely home to the schools of Business, Law, Commerce and management, Architecture and Creative Arts. Facilities Both City East and City West Campus location is on a prominent main road, North Terrace, and allows students, staff and visitors reasonably simple public transport access from wider Adelaide. UniSA does not provide on-campus parking to students at City East and City West Campus. The campus is accessible primarily by bus, with numerous bus stops situated outside the Campus. The University has a range of facilities such as sporting facilities, parklands, management and conference centre, theatres as well as retail and cafes.

Masterplan City West Campus - Campus Master Plan 2020 The University of South Australia City West Campus Master Plan aims to provide significant enhancement to the quality of life, services and facilities offered by the campus. The proposed Learning Centre will shift student services and University activities away from the North Terrace cluster towards the southern edge of Hindley Street. The relocation of student services and University activities, as well as public realm redevelopment, will create a new centre for the City West Campus.

This reorientation of the north and south areas of the campus will increase future opportunities for expansion with a greater pool of land holdings.

UniSA has recently completed and are in the process of constructing large infrastructure projects to assist in the growing students numbers into Adelaide. Information on these projects is detailed below: Jeffrey Smart Building Completed in 2014, the Jeffrey Smart Building is a new purpose-built student learning centre situated at the University’s City West campus. The building has a 5 Green Star rating and provides all University of South

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 18 Australia students with eight floors of modern technology zones, 600 new student PCs, interactive work spaces and silent study zones. Student Lounge Having reopened in September 2015, the redeveloped City West Student Lounge offers students an interactive space outside of study time. The building’s concept design was influence by the University’s architecture students and will cater for social and recreational activities organised by the University and their student groups.

Health Innovation Building In mid-2015, the University of South Australia started construction on a $230 million Health and Research facility which will form part of the South Australian Health and Biomedical precinct. This facility aims to enable an innovative approach to health research, teaching and community engagement. Great Hall Having commenced in October 2015, UniSA has begun construction of a new Great Hall situated at their City West campus. The Great Hall will serve as a Graduations and Function Centre including a purpose built amphitheatre, a five lane swimming pool and a fully-equipped fitness centre, due to be completed by late 2017.

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 19 Figure 1: University of South Australia City East Campus Map Figure 2: University of South Australia City West Campus Map Source: University of South Australia

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 20 Page | 20 Table 5: University of South Australia – City East and West Campus Country of Origin Trends 2010 Full-time Students 2011 Full-time Students 2012 Full-time Students 2013 Full-time Students 2014 Full-time Students China 1395 China 1477 China 1397 China 1298 China 1284 Malaysia 797 Malaysia 696 Malaysia 587 Malaysia 541 Malaysia 456 India 323 Hong Kong 306 Hong Kong 293 Hong Kong 270 Hong Kong 250 Hong Kong 291 Vietnam 186 Vietnam 182 Vietnam 165 Vietnam 163 Vietnam 200 India 178 India 156 India 159 India 153 South Korea 101 South Korea 113 South Korea 110 South Korea 105 South Korea 83 Singapore 91 Singapore 82 Philippines 71 Philippines 91 Philippines 64 Pakistan 67 Nepal 50 Singapore 64 Singapore 47 Brazil 60 Indonesia 54 Pakistan 47 Nepal 51 Saudi Arabia 45 Kenya 58 Sri Lanka 46 Indonesia 45 Kenya 37 Indonesia 39 Saudi Arabia 45 Other 491 Other 490 Other 416 Other 405 Other 420 Total 3856 Total 3670 Total 3364 Total 3165 Total 3036 Source: Department of Education Statistics Data Cube (uCube) The University of South Australia City Campuses have experienced a 27% decline in International Student numbers between the years 2010 – 2014 (most recent data).

Indian students were the largest reduction in student numbers, seeing a 53% decline of 170 students. Malaysian and Chinese students were the next largest drop in student numbers being 43% (341) and 8% (111) respectively. However significant increases in International Student enrolments since 2010 have come from Brazil, Kenya and the Philippines.

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 21 Page | 21 3.3 University of South Australia – Mawson Lakes Campus Courses and Use Students at UniSA’s Mawson Lakes campus primarily study:  Applied Science;  Civil Aviation;  Computer Science;  E-Commerce;  Engineering;  Environmental Studies;  Information Technology;  Science; and  Sports Science. Location The UniSA Mawson Lakes Campus is located in the northern suburbs of Adelaide, on Mawson Lakes Boulevard, next to Parafield Airport.

The campus is set in large open green spaces and wetland areas. Mawson Lakes is located approximately 15km north east of Adelaide’s Central Business District and is bounded by Parafield Gardens, Para Hills, Dry Creek and Green Fields.

The Mawson Lake Campus specialises in Schools of Computing and Information, Engineering, Science, Civil Aviation, Applied Science, Sports Science, E-Commerce and Environmental Studies and is highly regarded in these areas. Location and Facilities The Campus location is just off Main North Road, the main road through Mawson Lakes. The Mawson Interchange is a major public transport hub and only a five minute walk from the Campus. This Interchange allows students, staff and visitors with frequent transport links including buses and trains. The Mawson Lake Campus provides unreserved metred parking to students wishing to drive, as well as a limited amount of parking permits to postgraduate students.

Facilities provided include a post office, bookshop, library, student lounge, a large BBQ area, an ATM, sporting facilities and ovals, an Eco precinct including a greenhouse, and numerous other learning and recreational facilities. Masterplan The University of South Australia currently has no Master Plan for their Mawson Lake Campus, with the focus being on City East and City West Campuses.

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 22 Figure 3: University of South Australia Mawson Lakes Campus Map Source: University of South Australia

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 23 Page | 23 Table 6: University of South Australia – Mawson Lakes Country of Origin Trends 2010 Full-time Students 2011 Full-time Students 2012 Full-time Students 2013 Full-time Students 2014 Full-time Students China 211 China 198 China 210 China 197 China 195 India 195 India 113 India 78 Malaysia 106 Malaysia 111 Malaysia 74 Malaysia 79 Malaysia 73 Hong Kong 83 Hong Kong 98 Hong Kong 62 Hong Kong 70 Hong Kong 68 India 72 India 79 Pakistan 45 Saudi Arabia 35 Saudi Arabia 49 Saudi Arabia 44 Saudi Arabia 62 Sri Lanka 37 Pakistan 33 Vietnam 32 Vietnam 32 Brazil 37 Vietnam 34 Vietnam 33 Pakistan 26 Kuwait 26 Vietnam 34 Iran 24 Sri Lanka 30 Bangladesh 25 Bangladesh 25 Bangladesh 20 Saudi Arabia 23 Iran 29 Kuwait 25 Iran 23 Iran 19 Bangladesh 20 Bangladesh 19 Sri Lanka 24 Pakistan 22 Kuwait 19 Other 163 Other 185 Other 185 Other 198 Other 226 Total 888 Total 824 Total 795 Total 828 Total 900 Source: Department of Education Statistics Data Cube (uCube) Over the period of 2010 to 2014, International Student numbers have grown insignificantly at 1.4% or 12 students.

The most significant increase has come from Saudi Arabian, Malaysian and Hong Kong students being 77%, 43% and 38% respectively. There have been no material countries of decline between 2010 and 2014.

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 24 Page | 24 3.4 University of Adelaide The University of Adelaide is a highly regarded tertiary education and research institution, being ranked 100th in the world in the QS World University Rankings. It is part of Australia’s Group of Eight – a coalition of leading universities. The University was established in 1874, and as such is the oldest University in South Australia.

The University of Adelaide is ranked in the top 1% in the world in 11 research fields.

It has major strengths in many science subjects including environmental sciences and social sciences. The University of Adelaide has its main campus on North Terrace and three other regional campuses. The following facts highlight the University of Adelaide student demographics:  International / domestic students 24% / 73%  On campus / off campus students 97% / 3%  Domestic undergraduate / postgraduate students 79% / 21%  Domestic full-time / parttime domestic students 77% / 33%  International undergraduate / postgraduate students 51% / 49%  International full-time / parttime international students 85% / 15% The table below shows the number of domestic and overseas students enrolled into The University of Adelaide and split between mode of attendance (internal, external and multi-modal), type of attendance (full/part-time) and course level (undergraduate, postgraduate, non-award/enabling courses).

Table 7: University of Adelaide, Number of Student Enrolments, 2014 Internal External / Multi-modal Total Full-time Part-time Full-time Part-time Domestic Undergraduate 13,036 2,202 246 18 15,502 Postgraduate 1,929 1,905 68 298 4,200 Non-Award/Enabling 90 109 0 1 200 Total 15,055 4,216 314 317 19,902 Overseas Undergraduate 2,929 415 16 0 3,360 Postgraduate 2,589 594 12 18 3,213 Non-Award/Enabling 616 92 0 3 711 Total 6,134 1,101 28 21 7,284 Total 21,189 5,317 342 338 27,186 Source: Department of Education Statistics Data Cube (uCube)

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 25 Further analysis of the international students studying at the University of Adelaide as detailed below indicates a strong representation from Asian countries, reasonably consistent with overall trends for international students across Australia 2 . Top Countries of Origin Table 8: University of Adelaide, Top Countries of Origin 2014 Country Students Percentage of total students: 7,284 China (Excl Sars and Taiwan) 3,205 44% Other 1,165 16% Singapore 947 13% Malaysia 728 10% Hong Kong (SAR of China) 364 5% Brazil 291 4% Vietnam 219 3% Indonesia 219 3% India 146 2% Total: 7,284 100% Source: Department of Education Statistics Data Cube (uCube), The University of Adelaide 2014 pocket statistics *We have assumed student numbers based on total percentages of International Enrolments 2 Page 7 – JLL Australian Student Accommodation Market Update 2015

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 26 3.5 University of Adelaide – North Terrace Campus Courses and Use Students at the University of Adelaide North Terrace campus study:  Animal and Veterinary Sciences;  Arts;  Business;  Dentistry;  Education;  Engineering;  Law;  Medical Science;  Music;  Nursing;  Psychology; and  Science; Location The University of Adelaide’s North Terrace campus is located on North Terrace, within Adelaide CBD, and is bordered by the Art Gallery of South Australia, the State Library of South Australia and the South Australian Museum.

The campus is the University’s main campus being home to over 90% of the University’s total students and focusing on Schools of Engineering, Computer and Mathematical Sciences, Health Science, Arts, Business and Sciences. Being located adjacent to Adelaide’s original South Australian Health and Biomedical Precinct, the campus also provides Medical and Dental Schools providing a strong focus on practice-based learning to medical students. Facilities Similar to UniSA CBD campuses, the University of Adelaide North Terrace Campus location is on North Terrace and allows students, staff and visitors large public transport from within Adelaide CBD as well as surrounding suburbs.

University of Adelaide also provides a limited number of parking permits to allow oncampus parking to students.

The campus is primarily serviced by bus, with numerous bus stops along North Terrace. The University has a range of facilities such as sporting facilities, parklands, a fitness hub, post office, library, theatres, as well as cafes. Masterplan The University of Adelaide Health and Medical Sciences (AHMS) building has begun construction and is the largest capital works project in the University’s history. The building is located in the new South Australian Health and Biomedical Precinct and will support medicine, nursing and dentistry students as well as health sciences researchers. Costing $231million, the facility will be ready for students in Semester 1, 2017.

North Terrace Campus Master Plan - 2030 The University of Adelaide’s Master Plan has a strong focus on their North Terrace Campus, largely due to the campus holding over 95% of the total students enrolled at the University. The main four areas of focus within this Master Plan are as follows:  Identify development opportunities;  Improve space utilisation of existing buildings;  Ensure infrastructure matches students’ needs;  Improve urban design.

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 27 In order to achieve this, the University of Adelaide proposes to: construct new buildings to accommodate for student growth and provide a higher level of educational facilities, renovate and redevelop existing buildings, relocate and centralise the campus heart learning hub, increase the number of teaching labs and acquire more land for development and to increase University presence in Adelaide. Figure 4: University of Adelaide North Terrace campus Map Source: University of Adelaide

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