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 / part- time domestic students 65% / 35%  International undergraduate / postgraduate students 67% / 33%  International full-time / part- time 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 Part- time 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 / part- time domestic students 77% / 33%  International undergraduate / postgraduate students 51% / 49%  International full-time / part- time 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 on- campus 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

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 28 Page | 28 Table 9: University of Adelaide – North Terrace 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 3257 China 3295 China 3032 China 2868 China 2918 Malaysia 780 Malaysia 732 Malaysia 714 Malaysia 672 Malaysia 670 Hong Kong 294 Hong Kong 314 Hong Kong 298 Hong Kong 286 Hong Kong 336 Singapore 204 Singapore 206 Singapore 228 Singapore 239 Singapore 252 Vietnam 151 Vietnam 163 Vietnam 196 Vietnam 207 Brazil 209 Indonesia 132 Indonesia 131 Indonesia 131 Indonesia 135 Vietnam 188 India 115 South Korea 86 India 83 Brazil 97 Indonesia 172 South Korea 82 India 81 South Korea 77 India 94 India 130 USA 68 Saudi Arabia 76 Iran 65 South Korea 79 South Korea 76 Saudi Arabia 63 USA 69 Saudi Arabia 63 Iran 68 Saudi Arabia 66 Other 565 Other 585 Other 651 Other 767 Other 772 Total 5711 Total 5738 Total 5538 Total 5512 Total 5789 Source: Department of Education Statistics Data Cube (uCube) Like UniSA Mawson Lakes Campus, the University of Adelaide North Terrace Campus has seen very little movement in international student numbers over the last five year period.

In 2012 International enrolments dropped by 200 and again by 26 in 2013 but experienced a rise of 5% in 2014. There have been no significant fluctuations in student enrolments; however both Chinese and Malaysian students have decreased over this period with primary growth coming from Brazil, Hong Kong and Indonesia students. It is important to note that between 2013 and 2014 Brazilian enrolments rose by 112, showing a growth of over 50%.

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 29 Page | 29 3.6 Flinders University Flinders University was established in 1966 and has its main campus at Bedford Park (which is approximately 13 kilometres from Adelaide’s CBD). The University has a smaller campus at 182 Victoria Square, within Adelaide’s CBD, as well as other regional campuses. The University was ranked 77th in the Times Higher Education 100 Under 50 Rankings 2015.

It has a strong focus on research and was the first university in the world to have a bachelor course in nanotechnology, and the first in Australia to offer a graduate entry medical course.

The following facts highlight the Flinders University student demographics:  International / domestic students 16% / 83%  On campus / off campus students 79% / 21%  Domestic undergraduate / postgraduate students 68% / 32%  Domestic full-time / part- time domestic students 68% / 32%  International undergraduate / postgraduate students 30% / 70%  International full-time / part-time international students 67% / 33% The table below shows the number of domestic and overseas students enrolled into Flinders University 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 10: Flinders University, Number of Student Enrolments, 2014 Internal External / Multi-modal Total Full-time Part-time Full-time Part-time Domestic Undergraduate 9,951 2,424 548 358 13,281 Postgraduate 1,411 1,023 1,227 2,565 6,226 Non-Award/Enabling 540 77 25 8 650 Total 11,902 3,524 1,800 2,931 20,157 Overseas Undergraduate 931 214 49 9 1,203 Postgraduate 1,622 1,036 139 63 2,860 Non-Award/Enabling 62 36 0 0 98 Total 2,615 1,286 188 72 4,161 Total 14,517 4,810 1,988 3,003 24,318 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 | 30 3.7 Flinders University – Bedford Park Campus Courses and Use Students at Flinders University study:  Biological Sciences;  Business;  Chemical and Physical Sciences;  Computer Science and Engineering;  Education;  Environmental Studies;  Health Science;  Humanities;  International Studies;  Law;  Medicine;  Nursing and Midwifery;  Psychology; and  Social and Policy Studies. Location Flinders University Bedford Park campus is situated within Adelaide’s southern suburb of Bedford Park. The campus is considered to be the University’s main campus, offering a diverse range of degrees focusing on Education, Humanities, Law, Medicine, Science and Engineering, and Social and Behavioural Sciences.

Bedford Park is located approximately 12km south of Adelaide’s Central Business District and is within the City of Mitcham Local Government Area. Bedford Park lies immediately south of Clovelly Park and is bordered by Sturt to the west and Bellevue Heights to the east.

Flinders University has recently partially located to the new Tonsley redevelopment in Clovelly Park, providing the University with a centrally located School of Compute Science, Engineering and Mathematics as well as Flinders Medical Device Research Institute and the Centre for Nanoscale Science and Technology. Tonsley provides facilities for more than 150 staff and 2,000 University students. Facilities Situated on Sturt Road, Flinders University Bedford Park Campus is accessible primarily by bus services, with a train line located in Mitchell Park, next to the new Tonsley redevelopment. The University offers a number of car pool permits, encouraging two or more people to travel together in the same car, as well as unreserved metered parking spots around the campus.

An extension of the Tonsley rail line is under consideration by state government. The proposal would extend the existing Tonsley rail line to Flinders University and Flinders Medical Centre and improve connectivity between Tonsley and the Flinders precinct as well as travel times between the Adelaide CBD and Flinders University. Flinders University provides a large range of facilities including function and conference centres, a post office and pharmacy, sporting and gym facilities, a plaza with cafes and eateries, theatres, a child care centre, numerous libraries, parklands and a large private hospital.

Masterplan Over the next few years, Flinders University is investing $200 million into new and existing infrastructure, delivering four major infrastructure projects and a series of refurbishments. The main infrastructure project is the construction of a new Plaza and Student Hub opening early 2016. This Plaza and Student Hub aims to create a new heart for the Bedford Park campus and open students to the Central Library, the Plaza, a retail precinct and the Flinders Laneway. Within the new Plaza and Student Hub will be the Flinders connect which will serve as a one stop central support and services unit providing a physical multi-channel student service.

Tonsley Tonsley is a 61 hectare redevelopment of the former Mitsubishi motors plans in Clovelly Park, approximately 700m from Flinders University Bedford Park campus, with the majority of works completed in 2014 and 2015. Flinders University occupies two areas within the Tonsley precinct providing facilities for over 2,000 students

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 31 studying in the Schools of Computer Science, Engineering and Mathematics as well as Flinders Medical Device Research Institute and the Centre for Nanoscale Science and Technology.

Figure 5: Tonsley Site Map

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 32 Figure 6: Flinders University Bedford Park Campus Map Source: Flinders University

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 33 Page | 33 Table 11: Flinders University – Bedford Park 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 475 China 448 China 346 China 280 China 282 Indonesia 154 Saudi Arabia 183 Saudi Arabia 203 Saudi Arabia 198 Saudi Arabia 245 India 125 Indonesia 169 Indonesia 152 Indonesia 188 Indonesia 201 Saudi Arabia 122 Singapore 105 Singapore 94 Singapore 113 India 144 Malaysia 102 India 102 India 92 India 103 Singapore 115 Hong Kong 88 Malaysia 84 South Korea 76 Vietnam 94 Vietnam 103 Singapore 87 Hong Kong 82 Malaysia 71 Malaysia 71 Philippines 62 South Korea 76 South Korea 78 Vietnam 71 Hong Kong 60 Malaysia 59 Japan 62 USA 60 Hong Kong 69 South Korea 54 Korea 56 Canada 57 Philippines 56 USA 58 Philippines 47 Brazil 55 Other 558 Other 612 Other 607 Other 566 Other 660 Total 1906 Total 1979 Total 1839 Total 1774 Total 1982 Source: Department of Education Statistics Data Cube (uCube) Flinders University Bedford Park Campus saw a slight increase of 4% in International enrolments between 2010 and 2014.

The main change came from Saudi Arabian students, sitting around 50% growth over the five year period. Singapore, Indonesia, Vietnam and India enrolments also experienced relatively strong levels of growth. However, Hong Kong, Malaysian and Chinese student enrolments dropped 43%, 42% and 41% respectively.

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 34 Page | 34 3.8 Full-time Student Trends 2010 – 2014 The Figures below present Full-time Domestic and International student enrolments between 2010 and 2014 for each of Adelaide’s main universities, in order to reflect students trends and assist in identifying areas of growth and potential demand for student accommodation.

University of South Australia Figure 7: The University of South Australia Full-time Student Numbers 2010 – 2014 Source: Department of Education Statistics Data Cube (uCube) Since 2010 the University of South Australia is the only University in South Australia to experience negative growth in International enrolments from 8,833 in 2010 to 4,984 in 2014 representing a decline of nearly 50%.

Domestic Students have seen a steady growth between the years 2010 to 2014 peaking at 3.2% with the lowest growth being 1.5%.

University of Adelaide Figure 8: The University of Adelaide Full-time Student Numbers 2010 – 2014 Source: Department of Education Statistics Data Cube (uCube) 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 2010 2011 2012 2013 2014 Domestic International 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 2010 2011 2012 2013 2014 Domestic International

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 35 The Government of South Australia, Department of State Development: Student Accommodation Demand Study The University of Adelaide saw a decline in International enrolments between 2011 and 2013, however, experienced a bounce back with growth of 4.5% in 2014 to 6,162 enrolments.

Between 2010 and 2014, Domestic students have also had consistent growth of 4.5%, 4.8%, 6.2% and 2.9% respectively. Flinders University Figure 9: Flinders University Full-time Student Numbers 2010 – 2014 Source: Department of Education Statistics Data Cube (uCube) Flinders University has the fastest growing Domestic Student enrolment in South Australia between 2010 and 2014 with its highest growth of 10.8% in 2012 followed by 9.4% in 2013, 7.7% in 2011 and 4.3% in 2014. International enrolments also saw a jump of 13.77% from 2,417 in 2013 to 2,803 in 2014. 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 2010 2011 2012 2013 2014 Domestic International

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 36 The Government of South Australia, Department of State Development: Student Accommodation Demand Study 4 Supply Considerations – Adelaide CBD We have analysed the existing supply of purpose built student accommodation available to students within Adelaide’s CBD and North Adelaide. This accommodation is primarily used by students of the city based universities. 4.1 Types of Accommodation – Where do students live? Students choose accommodation according to their budgets, needs and preferences. Besides staying with family, friends or relatives, students may choose from a range of accommodation types in proximity of University CBD campuses, including:  On Campus, Off Campus or University affiliated accommodation;  Commercial Purpose Built Student Accommodation (PBSA);  Serviced apartments and private rental accommodation; and  Homestays, Backpackers Hostels and Guesthouses.

4.2 Residential Colleges / University Accommodation The Adelaide CBD and North Adelaide provides 1,021 bedrooms of accommodation, in six residential colleges, to higher education students with another 435 beds offered exclusively to University of Adelaide students.

The six residential colleges are independent of the universities but were set up to provide accommodation for university students, and in most cases, the universities have strong associations with the residential colleges, often being represented on their boards.  The Australian Lutheran College was founded in 1932, and provides 100 beds to undergraduate and postgraduate residents studying within Adelaide. The College is fully catered and provides single bedrooms in dormitory style accommodation.  Aquinas College is a catholic residential college for tertiary students providing single dormitory style rooms to 195 students.

The College offers fully catered accommodation, a gymnasium, and a multi- purpose sports court.

 Lincoln College is a residential college providing 215 students fully catered accommodation in single occupancy rooms.  St Ann’s College is an independently run, fully catered, residential college affiliated with all three undergraduate universities in South Australia. The College provides 185 students with a wardrobe, desk, storage areas and a single bed.  St Mark’s College is entering its 90th year of operation and provides 245 students with fully catered accommodation in single study bedrooms with shared facilities.

 Kathleen Lumley College was established in 1965 as a residential college for postgraduate students.

Currently the college offers 81 self-catered or catered bedrooms ranging from single rooms with shared facilities to private ensuite rooms with air conditioning.

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 37 The Government of South Australia, Department of State Development: Student Accommodation Demand Study The University of Adelaide provides purpose-built student accommodation facilities exclusively to University of Adelaide students as follows:  The University of Adelaide Village at 210 Grote Street, Adelaide offers 403 students accommodation in fully-equipped, self-catered four bedroom apartments and five bedroom townhouses. This accommodation typically runs at or near 100% occupancy and is privately owned with a long-term lease to the University.

 Mattanya is a group of four houses managed, and situated on land owned by the University of Adelaide. Matanya provided accommodation for 18 students and is situated in North Adelaide. Accommodation includes fully equipped kitchens, large living areas and separate bedrooms.  The University of Adelaide has a long-term lease arrangement with Urbanest on North Terrace, providing a floor of residential accommodation exclusively to University of Adelaide students. This accommodation arrangement provides 14 students with a mix of large studio apartments and single bedrooms in six bedroom apartments.

4.3 Other PBSA and Other Housing Options We are aware of 15 purpose built student accommodation properties within Adelaide CBD and North Adelaide, which provide a total of 2,309 bedrooms of accommodation. In the following section we provide notes for each of these off-campus providers: UniLodge is the main operator of purpose built student accommodation in central Adelaide, managing nine of the 15 properties within Adelaide CBD and North Adelaide. UniLodge manage 1,372 bedrooms in a mix of accommodation including studio apartments, twin share studio apartment, and one, two, three, four and five bedroom apartments.

All studios and apartments are fully furnished.

Urbanest North Terrace is situated directly opposite Adelaide Railway Station and within a short walking distance of the University of South Australia and the University of Adelaide CBD campuses. Urbanest accommodate 503 students in studio apartments, twin share studio apartments, and four, five and six bedroom apartments. Bradford Lodge is located approximately 2.5km from UniSA City East campus in the suburb of Rose Park and provides student accommodation to 110 students. Accommodation consists of fully furnished single bedrooms with shared kitchen and bathroom facilities.

UV Apartments falls within Adelaide’s CBD on King William Street and provides fully furnished studio and two bedroom apartments to 70 students.

UniHouse Rundle Mall is situated in the heart of Adelaide’s retail precinct, only minutes’ walk from the University of South Australia and Adelaide CBD campuses. UniHouse provides accommodation to 98 students in studio and two bedroom apartments. Unity Housing Globe Apartments offer 78 two bedroom apartments across 14 levels providing for a total of 156 students in Adelaide’s East End. Apartments come fully furnished with kitchen facilities, private bathrooms and sizable living areas.

Serviced Apartments and Private Rental Accommodation We note there is a large amount of serviced apartments in the vicinity of Adelaide’s CBD and North Adelaide. There are a range of hotel and serviced apartment providers with rooms starting at $75 per night through to over $500 per night. The accommodation is provided primarily on short-term bases with a few lodges offering longer terms. We do not consider that this accommodation will directly compete with PBSA on a long-term basis. Homestays, Backpackers Hostels and Guesthouses There are a number of backpacker hostels and guesthouses mainly focused around the North Western end of Adelaide’s CBD.

Accommodation is primarily provided in larger open share rooms starting at

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 38 The Government of South Australia, Department of State Development: Student Accommodation Demand Study approximately $55 per night through to $110 per night. The style and type of accommodation does not make it directly comparable to purpose built student accommodation. 4.4 Existing Student Accommodation There are 3,765 beds provided by the universities and commercial operators in PBSA. This represents approximately 11% of full-time student numbers in 2014. This means that approximately 89% of students either choose other living options or cannot obtain PBSA.

Students that are not living in student accommodation either live at home or rent from the private sector, mostly sharing apartments with other students. The table below provides a summary of where students live in Adelaide CBD and North Adelaide. Table 12: Adelaide CBD and North Adelaide Supply Analysis Accommodation Analysis Number of full-time Students Proportion of Students University provision 1,456 4.3% Commercial PBSA 2,309 6.8% Students renting privately or living at home 29,948 88.8% Total: 33,713 100% Source: JLL Student Accommodation Database, 2016, Australian Government Department of Education 2014 data.

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 39 The Government of South Australia, Department of State Development: Student Accommodation Demand Study 4.5 Pricing The below table summarises rents charged by UniSA and University of Adelaide: Table 13: Summary of University Accommodation & Residential Colleges Rents at Adelaide CBD & North Adelaide, 2016. Name Number of students (approx.) Tenancy Period Weekly 2016 Rental per person Utilities* University Provided Accommodation – Self Catered 435 The University of Adelaide Village 403 Four Bedroom Apartment 12 months $248 I, E, G and W Five Bedroom Townhouse 12 months $248 I, E, G and W Mattanya 18 One Bedroom Self-Contained 6 months $440 I, E, G and W Three Bedroom Ensuite 6 months $360 I, E, G and W Three Bedroom Share Bathroom 6 months $310 I, E, G and W Floor at Urbanest 14 Large Studio 12 months $340 I, E, G and W Six Bedroom Apartment 12 months $285 I, E, G and W Residential Colleges – Fully Catered 1,021 Australian Lutheran College 100 Dormitory Style Room 40 weeks $325 E, G and W Aquinas College 195 Dormitory Style Room 40 weeks $470 I, E, G and W Twin Share Room 40 weeks $329 I, E, G and W Lincoln College 215 Dormitory Style Room 40 weeks $463 - $477 I, E, G and W St Ann's College 185 Dormitory Style Room 30 weeks $476 I, E, G and W St Mark's College 245 Dormitory Style Room 40 weeks $486 I, E, G and W Kathleen Lumley College 81 Self-Catered Single Room 52 weeks $231 I, E, G and W Catered Single Room 52 weeks $271 I, E, G and W Catered Single Room - Ensuite 52 weeks $323 I, E, G and W Catered Single Room - Ensuite and air con 52 weeks $358 I, E, G and W Total 1,456 Source: Jones Lang LaSalle Student Accommodation Database, 2016.

* Utilities are I = Internet; E = Electricity; G = Gas; W = Water Table 14 provides an indication as to the existing level of rents for modern PBSA in proximity to Adelaide CBD and North Adelaide:

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 40 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Table 14: Summary of existing self-catered PBSA Rents in proximity of Adelaide CBD and North Adelaide, 2016 Name No. of students (approx.) Tenancy Period Weekly 2016 Rental p.p. Utilities* UniLodge @ Metro 430 One Bedroom Standard 12 months $275 E, G and W 6 months $295 E, G and W One Bedroom Standard with Balcony 12 months $290 E, G and W 6 months $310 E, G and W One Bedroom Queen 12 months $340 E, G and W 6 months $360 E, G and W One Bedroom Deluxe with Balcony 12 months $320 E, G and W 6 months $340 E, G and W Two Bedroom Standard 12 months $200 E, G and W 6 months $210 E, G and W Two Bedroom Deluxe 12 months $220 E, G and W 6 months $240 E, G and W Two Bedroom Deluxe with Balcony 12 months $230 E, G and W 6 months $240 E, G and W Two Bedroom Penthouse Loft 12 months $245 E, G and W 6 months $265 E, G and W Two Bedroom Penthouse Loft Deluxe 12 months $255 E, G and W 6 months $275 E, G and W UniLodge on Waymouth 222 Single Studio - Level G-4 6 or 12 months $270 G and W Single Studio - Level 5-8 6 or 12 months $280 G and W Twin Studio 6 or 12 months $150 G and W Double Studio - Level G-4 6 or 12 months $300 G and W Double Studio - Level 5 - 8 6 or 12 months $310 G and W Large Double Studio 6 or 12 months $325 G and W Bent Street Apartments 200 Two Bedroom Apartment 6 or 12 months $220 G and W Three Bedroom Apartment 6 or 12 months $223 G and W City West Apartments 32 One Bedroom Apartment 6 or 12 months $350 G and W Two Bedroom Apartment 6 or 12 months $195 G and W Four Bedroom Apartment 6 or 12 months $185 G and W The East West Apartments 91 One Bedroom Apartment 6 or 12 months $350 G and W Three Bedroom Apartment 6 or 12 months $205 G and W

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 41 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Name No. of students (approx.) Tenancy Period Weekly 2016 Rental p.p. Utilities* Edge Apartments 24 Two Bedroom Apartment 6 or 12 months $253 G and W Three Bedroom Townhouse 6 or 12 months $175 G Kent Town Lodge 78 One Bedroom Apartment 6 or 12 months $165 E and W Two Bedroom Apartment 6 or 12 months $130 E and W Tobin House 43 One Bedroom Apartment 6 or 12 months $360 G and W Three Bedroom Apartment 6 or 12 months $190 G and W Four Bedroom Apartment 6 or 12 months $185 G and W Five Bedroom Apartment 6 or 12 months $175 G and W Tower Apartments 252 Two Bedroom Apartment 6 or 12 months $230 W Urbanest North Terrace 503 Large Single Studio 12 months $383 I, E and W 6 months $413 I, E and W Large Double Studio 12 months $420 I, E and W 6 months $450 I, E and W Twin Share Studio 12 months $225 I, E and W 6 months $255 I, E and W Four Bedroom Apartment 12 months $310 - $325 I, E and W 6 months $340 - $355 I, E and W Five Bedroom Apartment 12 months $299 I, E and W 6 months $329 I, E and W Five Bedroom Twin Share Apartment 12 months $199 I, E and W 6 months $229 I, E and W Six Bedroom Apartment 12 months $282 I, E and W 6 months $312 I, E and W Bradford Lodge 110 Standard Room 6 or 12 months $195 E, G and W UV Apartments 70 Studio 12 months $300 G Two Bedroom 12 months $220 G UniHouse Rundle Mall 98 Studio Apartment 6 or 12 months $300 Two Bedroom Apartment 6 or 12 months $220 Globe Apartments 156 NRAS Apartment 12 months $181 E Two Bedroom Apartment 12 months $257 - $264 E Total 2,309 Source: Jones Lang LaSalle Student Accommodation Database, 2016.

All prices are based on per person occupancy although we note that some private operators only offer whole units for lease.

* Utilities are I = Internet; E = Electricity; G = Gas; W = Water

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 42 The Government of South Australia, Department of State Development: Student Accommodation Demand Study 5 Supply Considerations – Mawson Lakes We have analysed the existing supply of purpose built student accommodation within Mawson Lakes and the surrounding suburbs. 5.1 Types of Accommodation – Where do students live? Students choose accommodation according to their budgets, needs and preferences. Besides staying with family, friends or relatives, students may choose from a range of accommodation types in proximity to the UniSA Mawson Lakes campus, including:  On Campus, Off Campus or University affiliated accommodation;  Commercial Purpose Built Student Accommodation (PBSA);  Serviced apartments and private rental accommodation; and  Homestays, Backpackers Hostels and Guesthouses.

5.2 University Accommodation We note that there is no University owned or managed purpose built student accommodation around the UniSA Mawson Lakes’ campus.

5.3 Other PBSA and Other Housing Options We are aware of three purpose built student accommodation properties in proximity to the UniSA Mawson Lakes Campus, which provide a total of 386 bedrooms of accommodation. In the following section we provide notes for each of these off-campus properties: UV Apartments Mawson Lakes is situated 1km (14 minute walk) from UniSA and provides 90 beds in one and two bedroom apartments. UniShare is located in Mawson Lakes and Pooraka, both within a 10 minute walking distance of the University of South Australia. Accommodation is provided in six and seven bedroom apartments for a total of 20 students.

Torren Valley International Residence (TVIR) is located on the grounds of Modbury Hospital and is a 25 - 30 minute bus ride from the UniSA Mawson Lakes campus. TVIR offers dormitory style accommodation in standard single rooms with shared bathroom and kitchen facilities. All apartments are fully furnished. Serviced Apartments and Private Rental Accommodation We note there is a small amount of serviced apartments in the vicinity of the UniSA Mawson Lakes campus, with the majority being motels or motor inns. Rooms generally start at $120 per night through to $160 per night. The accommodation is provided primarily on short-term bases with a few properties offering longer terms.

We do not consider that this accommodation to be directly comparable with PBSA on a long-term basis.

Homestays, Backpackers Hostels and Guesthouses We are not aware of any major Backpacker or Hostel providers in proximity to the Mawson Lake campus. 5.4 Existing Student Accommodation There are 386 beds provided by commercial operators in PBSA. This represents approximately 10% of full- time student numbers in 2014. This means that approximately 90% of students either choose other living options or cannot obtain PBSA. Students that are not living in student accommodation either live at home or

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 43 The Government of South Australia, Department of State Development: Student Accommodation Demand Study rent from the private sector, mostly sharing apartments with other students.

The table below provides a summary of where students live in Mawson lakes and surrounding suburbs. Table 15: UniSA Mawson Lakes Campus Supply Analysis Accommodation Analysis Number of full-time Students Proportion of Students University provision 0 0.0% Commercial PBSA 386 10.4% Students renting privately or living at home 3,328 89.6% Total: 3,714 100% Source: JLL Student Accommodation Database, 2016, Australian Government Department of Education 2014 data. 5.5 Pricing The below table provides an indication as to the existing level of rents for modern PBSA in proximity to UniSA Mawson Lakes Campus: Table 16: Summary of existing PBSA Rents in proximity to UniSA Mawson Lakes, 2016 Name Number of students (approx.) Tenancy Period Weekly 2016 Rental per person Utilities Private PBSA – Self Catered 386 UV Apartments Mawson Lakes 90 Two Bedroom Apartment 52 weeks $145 G Three Bedroom Apartment 52 weeks $145 G UniShare 20 Single Bedroom in Six Bedroom Apartment 52 weeks $140 - $170 E, G and W Single Bedroom in Seven Bedroom Apartment 52 weeks $155 - $170 E, G and W Torrens Valley International Residence 276 Standard Room Minimum 3 months $135 E, W and I Premium Room Minimum 3 months $155 E, W and I Total 386 Source: Jones Lang LaSalle Student Accommodation Database, 2015.

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 44 The Government of South Australia, Department of State Development: Student Accommodation Demand Study 6 Supply Considerations – Bedford Park We have analysed the existing supply of purpose built student accommodation within Bedford Park and the surrounding suburbs. 6.1 Types of Accommodation – Where do students live? Students choose accommodation according to their budgets, needs and preferences. Besides staying with family, friends or relatives, students may choose from a range of accommodation types in proximity of Flinders University Bedford Park campus, including:  On Campus, Off Campus or University affiliated accommodation;  Commercial Purpose Built Student Accommodation (PBSA);  Serviced apartments and private rental accommodation; and  Homestays, Backpackers Hostels and Guesthouses.

6.2 University Accommodation There is a significant amount of university accommodation provided to students studying at Flinders University Bedford Park campus which varies in accommodation configuration and subsequent rental levels. We have summarised the accommodation below.

Deirdre Jordan Village is situated on campus and provides students with 80 fully equipped, self-catered units to 309 students. Accommodation consists of two, three and five bedroom apartments as well as three bedroom townhouses. Each room provides students with a single bed, a desk and desk chair, shelving and a wardrobe. University Hall is an on campus residential college providing dormitory style accommodation to 252 students. The hall is fully catered and offers students a single or twin share room with a bed, desk and chair, wardrobe and shelving and lockable storage.

6.3 Other PBSA and Other Housing Options We are unaware of any purpose built student accommodation properties within Bedford Park or surrounding suburbs.

Serviced Apartments and Private Rental Accommodation We are not aware of any serviced apartments in Bedford Park and the immediate surrounding suburbs. Homestays, Backpackers Hostels and Guesthouses We are not aware of any major Backpacker or Hostel providers in proximity to the Bedford Park campus.

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 45 The Government of South Australia, Department of State Development: Student Accommodation Demand Study 6.4 Existing Student Accommodation Within Bedford Park there are approximately 561 beds provided by Flinders University. This represents approximately 4% of full-time student numbers in 2014. This means that approximately 96% of students either choose other living options or cannot obtain PBSA. Students that are not living in student accommodation either live at home or rent from the private sector, mostly sharing apartments with other students.

Table 12 below provides a summary of where students live in Bedford Park and surrounding suburbs.

Table 17: Bedford Park Supply Analysis Accommodation Analysis Number of full-time Students Proportion of Students University provision 561 3.7% Commercial PBSA 0 0.0% Students renting privately or living at home 14,415 96.3% Total: 14,976 100% Source: JLL Student Accommodation Database, 2016, Australian Government Department of Education 2014 data. 6.5 Pricing The below table summarises rents charged by UniSA and University of Adelaide: Table 18: Summary of existing University Accommodation Rents at Flinders University Bedford Park Campus, 2016. Name Number of students (approx.) Tenancy Period Weekly 2016 Rental per person Utilities University Provided Accommodation – Self Catered 309 Deirdre Jordan Village 309 Single Room in 2, 3 and 5 Bedroom Apartment 40 weeks $246 I, E and W University Provided Accommodation – Fully Catered 252 University Hall 252 Single Room 40 weeks $388 I, E and W Twin Share Room 40 weeks $303 I, E and W Total 561 Source: Jones Lang LaSalle Student Accommodation Database, 2015.

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 46 The Government of South Australia, Department of State Development: Student Accommodation Demand Study 7 Adelaide Rental Market Overview 7.1 Adelaide CBD and North Adelaide Rental Market Overview Map 2: Location Map Source: Google Maps The following demographic data is based on the 2011 Census:  Adelaide CBD and North Adelaide has a population of 19,640 people;  Median age of the population is 30 years;  Average of 1.9 children per family;  More than 50% of residents are born overseas;  Most people in Adelaide CBD and North Adelaide live in apartments (52%) rather than houses;  About 59.4% of Adelaide CBD and North Adelaide residents rent their dwelling, the reminder fully own, own with a mortgage or occupy under other tenure;  40.5% of residents travel to work by car and only 10.3% use public transport;  Median household income is approximately $1,144 per week;  Median mortgage repayments are approximately $427 per week;  Median weekly rent is approximately $320; Suburb Summary Tables 19 and 20 provide suburb overviews for North Adelaide and Adelaide CBD.

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 47 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Table 19: Adelaide CBD and North Adelaide Market Attributes, 2011 Market Attributes North Adelaide Adelaide CBD Estimated Resident Population 6,678 12,962 Average Household size 1.9 1.8 Dwellings 3,399 7,318 % of Rental Accommodation 48% 65% Dwelling Structure Separate House (%) 25% 6% Semi Detached (%) 38% 34% Flat, Unit or Apartment (%) 36% 60% Flat, Unit or Apartment (no.) 956 3,292 No Bedroom 1% 2% One Bedroom 14% 22% Two Bedroom 44% 50% Three Bedroom 29% 19% Four or more Bedroom 1% 4% Source: ABS Census 2011, Australian Government Department of Employment Table 20: Adelaide CBD and North Adelaide Suburb Profiles, December 2015 Adelaide CBD Suburb Profile Report House Unit Median price $740,000 $448,220 Quarterly growth -4.82% 0.50% 12-month growth 7.25% 6.72% Average Annual Growth 7.31% 4.17% Weekly median advertised rent $440 $430 Number of sales 37 531 Gross rental yield 3.09% 4.99% Days on market 88.6 78.9 North Adelaide Suburb Profile Report House Unit Median price $1,117,500 $510,000 Quarterly growth 16.41% -4.90% 12-month growth 2.05% -7.27% Average Annual Growth 6.34% 5.03% Weekly median advertised rent $535 $380 Number of sales 42 146 Gross rental yield 2.49% 3.87% Days on market 101.6 67.1 Source: Core Logic RP Data, Suburb Profile Report, Dec 2015

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 48 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Residential Summary In order to gauge the local rental market, we have collated residential rental evidence within Adelaide CBD and North Adelaide. This evidence highlights that:  There is a low supply of studio apartments within the area.  One bedroom apartments range from $235 - $560 per week.  Two to three bedroom apartments generally range between $150 - $250 per person per week with newer stock available from $300 per person per week.

 Townhouses and houses are significantly lower in stock due to the higher density population of Adelaide CBD and North Adelaide. Table 21: Adelaide CBD and North Adelaide Rental Analysis Adelaide CBD and North Adelaide Range (per bedroom) Approx. Supply Adelaide CBD DCSI Average 2015 Q4 Number of Quarterly Transactions North Adelaide DCSI Average 2015 Q4 Number of Quarterly Transactions Studios $180 - $250 3 Unit One bedroom $235 - $560 48 $295 382 $290 18 Two bedroom $190 - $375 140 $215 209 $380 34 Three bedroom $145 - $332 15 $167 41 $495 9 Townhouse One bedroom $290 - $340 2 Two bedroom $165 - $245 19 Three bedroom $133 - $232 16 House One bedroom $325 1 $157 16 $335 >5 Two bedroom $200 - $350 9 $200 45 $403 20 Three bedroom $133 - $400 11 $158 37 $530 15 Four bedroom plus $193 - $223 5 $120 6 $600 >5 Source: Jones Lang LaSalle Student Accommodation Database, 2015.

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 49 The Government of South Australia, Department of State Development: Student Accommodation Demand Study 7.2 Mawson Lakes and Surrounding Suburbs Rental Market Overview Map 3: Location Map Source: Google Maps Mawson Lakes is the second location for the University of South Australia’s metropolitan campuses and lies within Greater Adelaide. Mawson Lakes is located approximately 12km north of Adelaide CBD with a median age of 31. Within Mawson Lakes is Australia’s first technology park, being established in 1982, as well as a large transport interchange providing access to Adelaide CBD and surrounding suburbs.

The following demographic data is based on the 2011 Census:  Mawson Lakes has a population of 10,872 people;  Median age of the population is 31 years;  Average of 1.8 children per family;  More than 40% of residents are born overseas;  Most people in Mawson Lakes live in houses (70%) rather than apartments;  About 63.4% of Mawson Lakes residents owned their dwelling fully or with a mortgage, the reminder rent or occupy under other tenure;  72.3% of residents travel to work by car and only 10% use public transport;  Median household income is approximately $1,670 per week;  Median mortgage repayments are approximately $466 per week;  Median weekly rent is approximately $330;

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 50 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Suburb Summary The table below shows the suburb overview and housing structure within Mawson Lakes. Table 22: Mawson Lakes Statistics Market Attributes Mawson Lakes Estimated Resident Population 10,872 Average Household size 2.6 Dwellings 4,575 % of Rental Accommodation 34% Dwelling Structure Separate House (%) 70% Semi Detached (%) 18% Flat, Unit or Apartment (%) 13% Flat, Unit or Apartment (no.) 496 No Bedroom 0.3% One Bedroom 1% Two Bedroom 19% Three Bedroom 48% Four or more Bedroom 31% Source: ABS Census 2011, Australian Government Department of Employment Mawson Lakes Suburb Profile Report House Unit Median price $457,000 $336,250 Quarterly growth -1.30% -1.10% 12-month growth -1.30% 6.24% Average Annual Growth 3.93% 1.63% Weekly median advertised rent $375 $325 Number of sales 277 106 Gross rental yield 4.27% 5.03% Days on market 83.5 123.3 Source: Suburb Profile Report, 2016

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 51 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Residential Summary In order to gauge the local rental market, we have collated residential rental evidence within Mawson Lakes and adjoining suburbs. This evidence highlights that:  Studio and one bedroom apartments are in very low stock.  Two bedroom apartments range from $120 - $185 per person per week.  Three bedroom apartments generally range between $86 - $147 per person per week.  The largest supply of residential accommodation is three bedroom houses ranging between $90 - $158 per person per week.

 Stock currently available on the market is generally unfurnished and of lower quality, particularly in surrounding suburbs to Mawson Lakes. Modern apartment accommodation is available in Mawson Lakes Town Centre. Table 23: Mawson Lakes Rental Analysis Mawson Lakes and Surrounds Range (per bedroom) Approx. Supply Mawson Lakes DCSI Average 2015 Q4 # of Quarterly Transactions Studios 0 0 0 Unit One bedroom 0 0 $198 >5 Two bedroom $120 - $185 30 $150 74 Three bedroom $110 - $150 11 $112 36 Townhouse Two bedroom $92 - $155 10 Three bedroom $86 - $147 16 House One bedroom 0 0 $230 >5 Two bedroom $125 - $170 4 $155 18 Three bedroom $90 - $158 50 $124 66 Four bedroom plus $85 - $155 14 $118 21 Source: Jones Lang LaSalle Student Accommodation Database, 2015.

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 52 The Government of South Australia, Department of State Development: Student Accommodation Demand Study 7.3 Bedford Park and Surrounding Suburbs Rental Market Overview Map 4: Location Map Source: Google Maps Bedford Park is situated in the southern suburbs of Adelaide, approximately 12km from Adelaide CBD. Bedford Park is home to the main campus for Flinders University and has a large student population with a median age of 27.

The following demographic data is based on the 2011 Census:  Bedford Park has a population of 1,837 people;  Median age of the population is 27 years;  Average of 1.7 children per family;  More than 50% of residents are born overseas;  Most people in Bedford Park live in houses (72%) rather than apartments;  About 54% of Bedford Park residents owned their dwelling fully or with a mortgage, the reminder rent or occupy under other tenure;  46.7% of residents travel to work by car and only 11.7% use public transport;  Median household income is approximately $918 per week;  Median mortgage repayments are approximately $318 per week;  Median weekly rent is approximately $240;

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 53 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Suburb Summary The table below shows the suburb overview and housing structure within Bedford Park and Clovelly Park. Table 24: Bedford Park Statistics Market Attributes Bedford Park Clovelly Park Estimated Resident Population 1,837 2,973 Average Household size 2.5 2.3 Dwellings 583 1,378 % of Rental Accommodation 43% 33% Dwelling Structure Separate House (%) 72% 70% Semi Detached (%) 2% 19% Flat, Unit or Apartment (%) 25% 12% Flat, Unit or Apartment (no.) 130 139 No Bedroom 0% 0.7% One Bedroom 2% 2% Two Bedroom 28% 22% Three Bedroom 49% 59% Four or more Bedroom 21% 14% Source: ABS Census 2011, Australian Government Department of Employment Bedford Park Suburb Profile Report House Unit Median price $435,000 $230,000 Quarterly growth N/A 0.55% 12-month growth -2.90% N/A Average Annual Growth 5.82% N/A Weekly median advertised rent $380 $283 Number of sales 38 22 Gross rental yield 4.54% 6.39% Days on market 60.8 N/A Source: Suburb Profile Report, 2016

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 54 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Residential Summary In order to gauge the local rental market, we have collated residential rental evidence within Bedford Park, Clovelly Park and surrounding suburbs. This evidence highlights that:  There is an overall low supply of studio apartments and units/flats.  One bedroom apartments range from $250 - $320 per week.  Two to three bedroom apartments generally range from $110 - $160 per person per week.  Three plus bedrooms in townhouses and houses range from $98 - $217 per person per week.

We note that due to the relatively low level of supply and transaction evidence, it is difficult to draw conclusions from the rental analysis.

Table 25: Bedford Park Rental Analysis Bedford Park and Surrounds Range (per bedroom) Approx. Supply Bedford Park DCSI Average 2015 Q4 # of Quarterly Transactions Clovelly Park DCSI Average 2015 Q6 # of Quarterly Transactions Studios $150 - $200 2 Unit One bedroom $250 - $320 4 $115 >5 Two bedroom $110 - $160 11 $132 7 $150 8 Three bedroom $110 1 $108 >5 Townhouse Two bedroom $100 - $170 13 Three bedroom $98 - $217 20 House One bedroom 0 0 $170 >5 Two bedroom $160 - $170 2 $160 >5 Three bedroom $100 - $147 30 $120 >5 $118 20 Four bedroom plus $100 - $122 7 $102 >5 Source: Jones Lang LaSalle Student Accommodation Database, 2015.

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 55 The Government of South Australia, Department of State Development: Student Accommodation Demand Study 7.4 Student Preferences Local Government Analysis Within this section we have analysed some living patterns of students within local government areas, focusing on the following areas:  Adelaide City Council – Both the University of South Australia City East and West Campus, and the University of Adelaide North Terrace Campus lie within this Adelaide City Council.  City of Salisbury – The University of South Australia Mawson Lakes Campus is situated within Mawson Lakes, part of the City of Salisbury.

 City of Marion and City of Mitcham – Bedford Park is home to Flinders University and is part of the City of Mitcham for the majority and the City of Marion to the north-west. As detailed in the Table below, we have analysed student numbers within the identified LGA’s between 2006 and 2015. This analysis indicates strong trends and areas of growth within University LGA’s ranging between 11.6% and 27.6% growth between 2014 and 2015. We also note that the top three student populated LGA’s are Adelaide City Council, the City of Marion and the City of Mitcham. The City of Salisbury ranks 7 th overall for total student numbers.

Table 26: Summary of Local Government Areas based on University Location Local Government Area LGA Student load ranking 2006 2009 % change from 2006 to 2009 2011 % change from 2009 to 2011 2014 % change from 2011 to 2014 2015 % change from 2014 to 2015 Adelaide City Council 1 2,194 3,071 40.0% 3,770 22.8% 2,831 -24.9% 3,612 27.6% City of Marion 2 461 850 84.4% 687 -19.2% 1,263 83.8% 1,417 12.2% City of Mitcham 3 896 1,032 15.2% 1,031 -0.1% 973 -5.6% 1,240 27.4% City of Salisbury 7 248 581 134.3% 624 7.4% 648 3.8% 723 11.6% Total students 13,126 % 53% Source: The Government of South Australia, Department of State Development.

Out of a sample size of 13,126 (2015), over 50% are located in the above four LGA’s. The following figures represent student population within local government areas between the years 2006 and 2015.

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 56 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Figure 10: Adelaide Student Population LGA Analysis 2006 Source: Department of State Development

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 57 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Figure 11: Adelaide Student Population LGA Analysis 2009 Source: Department of State Development

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2016. All Rights Reserved Page | 58 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Figure 12: Adelaide Student Population LGA Analysis 2011 Source: Department of State Development

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 59 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Figure 13: Adelaide Student Population LGA Analysis 2014 Source: Department of State Development

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 60 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Figure 14: Adelaide Student Population LGA Analysis 2015 Source: Department of State Development

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2016. All Rights Reserved Page | 61 The Government of South Australia, Department of State Development: Student Accommodation Demand Study 8 Occupancy Rates in PBSA We have canvased operators of large PBSA, primarily within Adelaide CBD, and understand that the majority of the properties are at 100% occupancy. We have also separately engaged with a private provider of student accommodation focusing on student lettings in the private rental market outside of the CBD. From this discussion we note that the private provider’s portfolio is at full capacity for Semester One 2016. We have also engaged with South Australian universities and understand that their properties are also generally trading at full capacity.

Anecdotal evidence has highlighted that some of the residential colleges are not operating at 100% occupancy, and this is primarily due to the accommodation not meeting the needs of students. In particular, students tend to prefer accommodation with ensuite bathroom rather than shared facilities. It is worth noting that the recent redevelopment works at Aquinas College did not increase overall capacity significantly, but was focussed on the quality of accommodation, with the new accommodation including 19 units with ensuites.

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2016. All Rights Reserved Page | 62 The Government of South Australia, Department of State Development: Student Accommodation Demand Study 9 Development Pipeline Urbanest has recently obtained planning approval for their second scheme in Adelaide situated at 228 - 231 North Terrace. The proposed accommodation will include an 18 storey residential tower with a roof terrace providing 689 beds in 505 apartments. The accommodation mix will be single and twin studios with either shared bathroom facilities or ensuites. We understand that the construction works are due to commence in mid-2016, with a targeted completion in early 2018, ready for Semester 1 that year.

BlueSky has announced a new development proposal located at 231-243 Waymouth Street. If successful in raising sufficient private equity, the development will provide 415 student beds in a mix of two bedroom, five bedroom, and twin share apartments as well as self-contained studio apartments. A development approval has not been granted yet for this project.

We note that during 2014 the University of South Australia ran a tender process to select a development partner to build and operate approximately 300 bedrooms adjacent to its City West campus. We understand that CLV has been appointed the preferred supplier, but we are not aware that CLV has finalised commercial terms with the University. We are also aware that the Royal Adelaide Hospital site will be redeveloped after its relocation in 2016. The State Government is seeking Expressions of Interest from interested and experienced parties to develop all or part of the seven hectare site with a vision to create a mixed use urban precinct with the potential to accommodate residential, retail, hotel, commercial, health education and cultural facilities.

The site includes the former nurses quarters, which we understand currently provide low cost accommodation for families of patients as well as students. This building may provide an opportunity for ongoing affordable accommodation as part of the site’s redevelopment.

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 63 The Government of South Australia, Department of State Development: Student Accommodation Demand Study 10 Top Ten Private Operators Within the following table, we provide a summary of the active 2014 accommodation providers, plus new entrants that have arrived in the Australian market in 2015. Table 27: Summary of Commercial Accommodation Providers Operator Notes UniLodge Primarily a third party operator of student accommodation with direct limited investment into real estate.

UniLodge have created a market leading position (in terms of number of beds under management), primarily focused on long term management agreements for off campus properties across major Australian cities and in New Zealand.

As mentioned in Section 5.3, Unilodge currently manage 1,372 beds across nine properties in and around Adelaide’s CBD. Campus Living Villages Portfolio primarily developed on the basis of BOOT schemes. CLV has had a strong focus and good success with the growth of its portfolio across universities in Australia and New Zealand. CLV also have an active and growing business in the UK.

Urbanest Urbanest have been the most active off-campus developer in Australia over the last five years. They have a strong development pipeline which has been primarily focused on Sydney and Melbourne. Have one operational property on North Terrace and acquired a second site for development on North Terrace in 2015. Student Housing Australia Third party manager. SHA is primarily focussed on the management of smaller purpose built schemes in Melbourne. The business includes a number of properties held in Strata ownerships. The Pad Third party management, with no direct investment into real estate.

The Pad is particularly active in the Brisbane market, has been seeking opportunities in both Sydney and Melbourne over the last 12 months.

Iglu Off- campus developer/operator. Iglu have a strong focus on design quality within their schemes (including bedrooms, apartments and common areas). As evidenced by the quality of accommodation within both their Regent Street and Chatswood properties in Sydney. Centurion Publicly listed Singaporean based company. Centurion has a sizable portfolio of key worker accommodation across Asia.

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 64 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Centurion has been developing a student accommodation business over the last 18 months.

In late 2014 Centurion acquired a portfolio of student accommodation in the UK. They are looking at further opportunities in the student accommodation sector both in Australia and the UK. Scape A developer and operator of off-campus purpose built student accommodation. Scape have developed a portfolio of six properties (operational and under development) across London. Their first scheme was completed in 2012, just before the London Olympics.

Scape’s business model is to provide 100% studios. In the UK, studios have been delivered as small as 14 m2. It is understood that Scape controls three sites in Melbourne, with potential capacity of circa 2,300 bedrooms, plus sites in Sydney and Brisbane. Valparaiso An operator of off-campus purpose built accommodation. First acquisition in Australia was 363 Adelaide Street, Brisbane, the ex- Boeing headquarters. It is their intention to refurbish the building to deliver approximately 700 bedrooms (predominantly self-contained studios). Have acquired two additional sites in Brisbane.

Blue Sky funds Management Fund manager and syndicator.

Entered the market just over one year ago and have been particularly active acquiring sites during 2015, including one in Adelaide. Source: Jones Lang LaSalle Student Accommodation Database, 2015.

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 65 The Government of South Australia, Department of State Development: Student Accommodation Demand Study 11 University Benchmark Profiles 11.1 Existing Supply of Accommodation – Adelaide Universities Detailed in the table below is our analysis of the existing provision of PBSA accommodation in the vicinity of each of the Adelaide universities in relation to full time student numbers. Table 28: Summary of Adelaide Universities Existing Student Accommodation Analysis University of South Australia and University of Adelaide CBD Campuses University of South Australia Mawson Lakes Flinders University Bedford Park Student Profile FT Student 33,700 3,700 15,000 Accommodation Supply Total Rooms 3,765 386 561 FT Students Per Bed 9.0 9.6 26.7 Source: Department of Education and Training, JLL This analysis indicates that existing supply ratio ranges from 9.0 students per bed to 26.7 students per bed.

As a comparator, we provide summaries of the existing supply ratios for several major universities situated in other state capital cities. With the exception of the Australian National University, which has the highest provision of accommodation (and a significantly lower ratio of 3.4), the existing supply at UniSA and the University of Adelaide is higher than the University or Melbourne, University of Queensland and the University of Sydney.

Table 29: Summary of Comparable Universities Existing Student Accommodation Analysis ANU (Canberra) Uni. of Melbourne (Parkville) Uni QLD (St Lucia) Uni. of Sydney Student Profile FT Students 15,000 43,000 42,000 43,500 Accommodation Supply Total Rooms 4,432 2,533 2,871 2,666 FT Students Per Bed 3.4 17.0 14.6 16.3 Source: Department of Education and Training, JLL

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 66 The Government of South Australia, Department of State Development: Student Accommodation Demand Study 12 PBSA Demand 12.1 Current and Future Demand Levels To project demand scenarios, we undertake two pieces of analysis as follows: 1.

Demand Analysis — with consideration of existing propensities, projected enrolments and benchmark supply levels, potential supply ratios are projected to 2020. 2. Demand and Supply Balance — with the projection of student accommodation demand, we are able to identify current and future supply gaps to inform the quantum of delivery required going forward.

12.2 Initial Demand Forecasts As detailed in Sections 5, 6 and 7 we have analysed and benchmarked the existing supply of accommodation at each of the four University campuses in Adelaide. This analysis indicates existing supply ratios ranging from the University of South Australia City East and West Campuses and the University of Adelaide North Terrace campus at 9.0 full time students per bed to Flinders University Bedford Park campus with 26.7 full time students per bed. We have analysed the existing take up of accommodation to indicate propensity rate ranges for a number of suburban universities with the ranges indicated below:  Domestic students typically have existing take up rates at around 2.7 – 5.0%.

 Overseas students often have higher take up rates in the order of 3.3 – 20%. However a major limitation of the existing take up analysis is the supply of accommodation. Students may wish to reside in PBSA, but with a lack of supply they are forced to seek alternative accommodation options. In order to forecast the potential undersupply of bedrooms for each Adelaide University Campus we have therefore applied forecast take up rates under three propensity scenarios as detailed in the table below. Table 30: Forecast demand propensity for PBSA Domestic Students propensity for PBSA International Students propensity for PBSA Scenarios Low forecast 5% 40% Mid forecast 10% 50% High forecast 15% 60% We have assumed as a low forecast approximately 30% of the domestic interstate students would require PBSA, with some additional demand from students travelling into Adelaide from other areas of South Australia to give a total of 5% demand under this scenario.

We have assumed 10% uptake for the mid forecast and 15% for the high forecast.

Our international student propensity forecasts have had consideration from the findings within the Department of Education and Training International Student Survey 2014 Overview Report April 2015. The survey indicated 26% of international students are either living with friends and relatives, or other accommodation, suggesting 74% could potentially seek PBSA. We have therefore taken a prudent approach to assessing international students demand propensities and modelled low, mid and high forecasts at 40%, 50% and 60% respectively.

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2016. All Rights Reserved Page | 67 The Government of South Australia, Department of State Development: Student Accommodation Demand Study We have applied a forecasted growth rates to each scenario as detailed below: Table 31: Forecast enrolment growth table Domestic Students forecasted growth International Students forecasted growth Scenarios Low forecast 3% (existing yearly average growth over the past 5 years based) 0% (reflecting falling and slow growth in South Australian international student numbers over the past five years) Mid forecast 4.26% (125% of yearly average growth over the past 5 years) 3.5% High forecast 5.11% (150% of yearly average growth over the past 5 years) 7% The initial set of tables tests the sensitivity of growth rate assumptions against propensity forecasts with a resultant students per bed ratio forecast allowing us to ‘sense check’ these assumptions i.e.

should the forecast ratios lie significantly outside our existing analysis of universities provided in Tables 26 and 27 then these scenarios can be discounted.

On the following pages we provide a summary of each propensity take up scenario for each campus including forecasts towards 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 | 68 Page | 68 Table 32: Demand Projection Analysis – Adelaide CBD University Campuses Adelaide CBD Campuses - Existing Propensities (Low) Adelaide CBD Campuses - Existing Propensities (Mid.) Adelaide CBD Campuses - Existing Propensities (High.) FT Students 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Domestic 25,635 26,404 27,196 28,012 28,852 29,718 25,948 27,054 28,206 29,408 30,660 31,967 26,160 27,497 28,902 30,378 31,931 33,562 International 8,825 8,825 8,825 8,825 8,825 8,825 9,134 9,454 9,784 10,127 10,481 10,848 9,443 10,104 10,811 11,568 12,378 13,244 Total 34,460 35,229 36,021 36,837 37,677 38,543 35,082 36,507 37,991 39,535 41,142 42,815 35,603 37,600 39,713 41,946 44,308 46,806 Propensity Domestic 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% International 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% Demand Domestic 1282 1320 1360 1401 1443 1486 2595 2705 2821 2941 3066 3197 3924 4124 4335 4557 4790 5034 International 3530 3530 3530 3530 3530 3530 4567 4727 4892 5063 5241 5424 5666 6062 6487 6941 7427 7946 Total 4,812 4,850 4,890 4,931 4,973 5,016 7,162 7,432 7,713 8,004 8,307 8,621 9,590 10,187 10,822 11,497 12,216 12,981 Supply 3,765 3,765 3,765 4,454 4,454 4,454 3,765 3,765 3,765 4,454 4,454 4,454 3,765 3,765 3,765 4,454 4,454 4,454 FT Student Per Bed 1.3 1.3 1.3 1.1 1.1 1.1 1.9 2.0 2.0 1.8 1.9 1.9 2.5 2.7 2.9 2.6 2.7 2.9 Source: JLL, Department of Education and Training

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 69 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Table 33: Demand Projection Analysis – The University of South Australia Mawson Lakes Campus University of South Australia Mawson Lakes Campus - Existing Propensities (Low) University of South Australia Mawson Lakes Campus - Existing Propensities (Mid.) University of South Australia Mawson Lakes Campus - Existing Propensities (High.) FT Students 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Domestic 2,898 2,985 3,075 3,167 3,262 3,360 2,934 3,059 3,189 3,325 3,467 3,614 2,958 3,109 3,268 3,435 3,610 3,795 International 900 900 900 900 900 900 932 964 998 1,033 1,069 1,106 963 1,030 1,103 1,180 1,262 1,351 Total 3,798 3,885 3,975 4,067 4,162 4,260 3,865 4,023 4,187 4,358 4,536 4,721 3,921 4,139 4,370 4,615 4,873 5,145 Propensity Domestic 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% International 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% Demand Domestic 145 149 154 158 163 168 293 306 319 333 347 361 444 466 490 515 542 569 International 360 360 360 360 360 360 466 482 499 516 534 553 578 618 662 708 757 810 Total 505 509 514 518 523 528 759 788 818 849 881 915 1021 1085 1152 1223 1299 1380 Supply 386 386 386 386 386 386 386 386 386 386 386 386 386 386 386 386 386 386 FT Student Per Bed 1.3 1.3 1.3 1.3 1.4 1.4 2.0 2.0 2.1 2.2 2.3 2.4 2.6 2.8 3.0 3.2 3.4 3.6 Source: JLL, Department of Education and Training

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 70 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Table 34: Demand Projection Analysis – Flinders University Bedford Park Campus Flinders University Bedford Park Campus - Existing Propensities (Low) Flinders University Bedford Park Campus - Existing Propensities (Mid.) Flinders University Bedford Park Campus - Existing Propensities (High.) FT Students 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Domestic 13,384 13,785 14,199 14,625 15,064 15,516 13,548 14,125 14,726 15,354 16,008 16,690 13,658 14,356 15,090 15,861 16,671 17,523 International 1,982 1,982 1,982 1,982 1,982 1,982 2,051 2,123 2,197 2,274 2,354 2,436 2,121 2,269 2,428 2,598 2,780 2,974 Total 15,366 15,767 16,181 16,607 17,046 17,498 15,599 16,248 16,924 17,628 18,362 19,126 15,779 16,625 17,518 18,459 19,451 20,497 Propensity Domestic 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% International 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% Demand Domestic 669 689 710 731 753 776 1355 1412 1473 1535 1601 1669 2049 2153 2263 2379 2501 2628 International 793 793 793 793 793 793 1026 1062 1099 1137 1177 1218 1272 1362 1457 1559 1668 1785 Total 1462 1482 1503 1524 1546 1569 2380 2474 2571 2673 2778 2887 3321 3515 3720 3938 4169 4413 Supply 561 561 561 561 561 561 561 561 561 561 561 561 561 561 561 561 561 561 FT Student Per Bed 2.6 2.6 2.7 2.7 2.8 2.8 4.2 4.4 4.6 4.8 5.0 5.1 5.9 6.3 6.6 7.0 7.4 7.9 Source: JLL, Department of Education and Training

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 71 Page | 71 The table below is based on low propensity of 5% for domestic students and 40% for international students. The three growth forecast scenarios (as detailed in Table 29 and 30) are:  Low: 3% for domestic students and 0% for international students;  Mid: 4.26% for domestic students and 3.5% for international students; and  High: 5.11% for domestic students and 7% for international students respectively.

Table 35: Low Propensity Forecast Summary – Full-time Students per Bed Low Forecast Growth Scenario Mid Forecast Growth Scenario High Forecast Growth Scenario 15’ 16’ 17’ 18’ 19’ 20’ 15’ 16’ 17’ 18’ 19’ 20’ 15’ 16’ 17’ 18’ 19’ 20’ University Adelaide CBD 1.3 1.3 1.3 1.1 1.1 1.1 7.3 7.5 7.8 8.0 8.3 8.5 7.4 7.8 8.1 8.5 8.9 9.3 Mawson Lakes 1.3 1.3 1.3 1.3 1.4 1.4 7.7 7.9 8.1 8.4 8.7 8.9 7.8 8.1 8.5 8.9 9.3 9.7 Bedford Park 2.6 2.6 2.7 2.7 2.8 2.8 10.7 11.0 11.3 11.6 11.9 12.2 10.8 11.2 11.7 12.1 12.6 13.1 Total 1.4 1.5 1.5 1.3 1.3 1.3 8.0 8.3 8.6 8.8 9.1 9.4 8.2 8.5 8.9 9.3 9.7 10.2 Source: JLL, Department of Education and Training The table below is based on mid propensity of 10% for domestic students and 50% for international students.

The three growth forecast scenarios (as detailed in Table 29 and 30) are:  Low: 3% for domestic students and 0% for international students;  Mid: 4.26% for domestic students and 3.5% for international students; and  High: 5.11% for domestic students and 7% for international students respectively. Table 36: Mid Propensity Forecast Summary Low Forecast Growth Scenario Mid Forecast Growth Scenario High Forecast Growth Scenario 15’ 16’ 17’ 18’ 19’ 20’ 15’ 16’ 17’ 18’ 19’ 20’ 15’ 16’ 17’ 18’ 19’ 20’ University Adelaide CBD 4.8 4.7 4.7 4.6 4.5 4.5 1.9 2.0 2.0 1.8 1.9 1.9 5.0 5.1 5.1 5.2 5.3 5.4 Mawson Lakes 5.0 4.9 4.9 4.8 4.7 4.7 2.0 2.0 2.1 2.2 2.3 2.4 5.2 5.3 5.3 5.4 5.5 5.6 Bedford Park 6.5 6.4 6.3 6.2 6.1 6.1 4.2 4.4 4.6 4.8 5.0 5.1 6.6 6.7 6.8 6.9 7.0 7.1 Total 5.2 5.1 5.1 5.0 4.9 4.9 2.2 2.3 2.4 2.1 2.2 2.3 5.4 5.5 5.5 5.6 5.7 5.8 Source: JLL, Department of Education and Training

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 72 The Government of South Australia, Department of State Development: Student Accommodation Demand Study The table below is based on high propensity of 15% for domestic students and 60% for international students. The three growth forecast scenarios (as detailed in Table 29 and 30) are:  Low: 3% for domestic students and 0% for international students;  Mid: 4.26% for domestic students and 3.5% for international students; and  High: 5.11% for domestic students and 7% for international students respectively. Table 37: High Propensity Forecast Summary Low Forecast Growth Scenario Mid Forecast Growth Scenario High Forecast Growth Scenario 15’ 16’ 17’ 18’ 19’ 20’ 15’ 16’ 17’ 18’ 19’ 20’ 15’ 16’ 17’ 18’ 19’ 20’ University Adelaide CBD 3.6 3.5 3.3 3.2 3.1 3.0 3.7 3.6 3.5 3.4 3.4 3.3 2.5 2.7 2.9 2.6 2.7 2.9 Mawson Lakes 3.7 3.6 3.5 3.3 3.2 3.1 3.8 3.7 3.6 3.6 3.5 3.4 2.6 2.8 3.0 3.2 3.4 3.6 Bedford Park 4.6 4.5 4.3 4.2 4.1 4.0 4.7 4.6 4.5 4.5 4.4 4.3 5.9 6.3 6.6 7.0 7.4 7.9 Total 3.8 3.7 3.6 3.5 3.3 3.2 3.9 3.8 3.8 3.7 3.6 3.6 3.0 3.1 3.3 3.1 3.3 3.5 Source: JLL, Department of Education and Training 12.3 Summary of initial demand forecasting Tables 33 – 36 present a summary of our demographic and propensity forecasting.

This analysis demonstrates that the sensitivity of students’ propensity to take up accommodation has a far greater impact on forecast demand than student population growth estimates. These numbers represent the ratio of beds needed compared to what is already supplied, for example in Table 33, based on our analysis, Bedford Park will need 2.8 more beds for every bed currently supplied.

12.4 Gap analysis forecast Comparing the projected demand levels to existing and committed supply allows us to understand the potential imbalance and provides an indication of the existing and future gap in supply and the potential future pipeline that could be delivered at each campus. Given the results of our initial demand forecasting we have discounted the high propensity scenario for this further analysis. On the following pages we provide summary tables for the gap analysis to 2020, together with charts summarising the low and mid propensity scenarios for each campus.

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2016. All Rights Reserved Page | 73 Page | 73 Table 38: Supply Gap Analysis – Adelaide CBD Campuses Adelaide CBD Campuses - Existing Propensities (Low) Adelaide CBD Campuses - Existing Propensities (Mid.) Adelaide CBD Campuses - Existing Propensities (High.) Demand 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Domestic 1282 1320 1360 1401 1443 1486 2595 2705 2821 2941 3066 3197 3924 4124 4335 4557 4790 5034 International 3530 3530 3530 3530 3530 3530 4567 4727 4892 5063 5241 5424 5666 6062 6487 6941 7427 7946 Total 4812 4850 4890 4931 4973 5016 7162 7432 7713 8004 8307 8621 9590 10187 10822 11497 12216 12981 Supply Existing 3,765 3,765 3,765 4,454 4,454 4,454 3,765 3,765 3,765 4,454 4,454 4,454 3,765 3,765 3,765 4,454 4,454 4,454 Total Supply 3765 3765 3765 4454 4454 4454 3765 3765 3765 4454 4454 4454 3765 3765 3765 4454 4454 4454 Beds Needed 1047 1085 1125 477 519 562 3397 3667 3948 3550 3853 4167 5825 6422 7057 7043 7762 8527 Source: JLL, Department of Education and Training

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 74 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 University of South Australia Mawson Lakes Campus - Existing Propensities (Low) University of South Australia Mawson Lakes Campus - Existing Propensities (Mid) University of South Australia Mawson Lakes Campus - Existing Propensities (High) Demand 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Domestic 145 149 154 158 163 168 293 306 319 333 347 361 444 466 490 515 542 569 International 360 360 360 360 360 360 466 482 499 516 534 553 578 618 662 708 757 810 Total 505 509 514 518 523 528 759 788 818 849 881 915 1021 1085 1152 1223 1299 1380 Supply Existing 386 386 386 386 386 386 386 386 386 386 386 386 386 386 386 386 386 386 Total Supply 386 386 386 386 386 386 386 386 386 386 386 386 386 386 386 386 386 386 Beds Needed 119 123 128 132 137 142 373 402 432 463 495 529 635 699 766 837 913 994 Source: JLL, Department of Education and Training

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 75 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Table 40: Supply Gap Analysis – Flinders University Bedford Park Campus Flinders University Bedford Park Campus - Existing Propensities (Low) Flinders University Bedford Park Campus - Existing Propensities (Mid.) Flinders University Bedford Park Campus - Existing Propensities (High.) Demand 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Domestic 669 689 710 731 753 776 1355 1412 1473 1535 1601 1669 2049 2153 2263 2379 2501 2628 International 793 793 793 793 793 793 1026 1062 1099 1137 1177 1218 1272 1362 1457 1559 1668 1785 Total 1462 1482 1503 1524 1546 1569 2380 2474 2571 2673 2778 2887 3321 3515 3720 3938 4169 4413 Supply Existing 561 561 561 561 561 561 561 561 561 561 561 561 561 561 561 561 561 561 Total Supply 561 561 561 561 561 561 561 561 561 561 561 561 561 561 561 561 561 561 Beds Needed 901 921 942 963 985 1008 1819 1913 2010 2112 2217 2326 2760 2954 3159 3377 3608 3852 Source: JLL, Department of Education and Training

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 76 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Table 41: Supply Gap Analysis – Total Universities Total Universities - Existing Propensities (Low.) Total Universities - Existing Propensities (Mid.) Total Universities - Existing Propensities (High.) Demand 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Domestic 2,096 2,159 2,223 2,290 2,359 2,430 4,243 4,424 4,612 4,809 5,013 5,227 6,416 6,744 7,089 7,451 7,832 8,232 International 4,683 4,683 4,683 4,683 4,683 4,683 6,058 6,270 6,490 6,717 6,952 7,195 7,516 8,042 8,605 9,207 9,852 10,541 Total 6,779 6,842 6,906 6,973 7,042 7,112 10,301 10,694 11,102 11,526 11,966 12,423 13,932 14,786 15,694 16,658 17,684 18,773 Supply Existing 4,712 4,712 4,712 5,401 5,401 5,401 4,712 4,712 4,712 5,401 5,401 5,401 4,712 4,712 4,712 5,401 5,401 5,401 Total Supply 4,712 4,712 4,712 5,401 5,401 5,401 4,712 4,712 4,712 5,401 5,401 5,401 4,712 4,712 4,712 5,401 5,401 5,401 Beds Needed 2,067 2,130 2,194 1,572 1,641 1,711 5,589 5,982 6,390 6,125 6,565 7,022 9,220 10,074 10,982 11,257 12,283 13,372 Source: JLL, Department of Education and Training

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 77 Page | 77 The outcomes from this analysis suggest: Figure 15: Adelaide CBD Campuses Gap Analysis of Low and Mid Scenarios Source: JLL, Department of Education and Training Adelaide CBD Campuses  Based on the low propensity scenario there could be demand for an additional 562 beds by 2020, 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.

Given the size of PBSA facilities in the Adelaide market to date, there could be demand for one additional large development by 2020.

 The mid propensity scenario, total bed shortfall could be in the order of 4,167 beds by 2020. This results in a supply benchmark of 6.2 FT students per bed, a rate that we believe would be aspirational based on benchmark levels of other universities.  The private rental market is very important to city based students.  We note that the current vacancy rate for rental accommodation in the Adelaide CBD is 4.2% (SQM Research, January 2016). The rate has trended higher over the past five years, and with a strong supply pipeline, vacancy is likely to increase further over the next two years.

 Median rents have also been stable over the past three years, and anecdotal evidence from property management agents has indicated that the letting up period has increased. 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 2015 2020 2015 2020 Adelaide CBD - Gap Analysis Total Supply Total Demand Low Scenario Mid Scenario 1047 562 3,397 4,167

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 78 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Figure 16: University of South Australia – Mawson Lakes Campus Gap Analysis of Low and Mid Scenarios Source: JLL, Department of Education and Training University of South Australia Mawson Lakes Campus  Based on the low propensity scenario of 5% for domestic students and 40% for international students, there could be a possible demand for an additional 142 beds by 2020, resulting in a supply level of 8.1 FT students per bed.

 The mid propensity scenario, total bed demand could be in the order of 529 beds by 2020. This results in a supply benchmark of 5.2 FT students per bed, a rate that we believe would be aspirational based on benchmark levels of other universities.  We note that the current vacancy rate for rental accommodation in the suburb of Mawson Lakes is 4.1% (SQM Research, January 2016). The rate has trended up over the last two years and the number of vacant premises available for rent has doubled over the last two years.  Mawson Lakes has attracted a significant amount of apartment development over the past decade, in two main locations; within the town centre near UniSA, and adjacent to the Mawson Lakes Train Station.

There are a further 80 apartments that may be completed before the end of 2018. However, we note that the market has slowed and a number of projects have been abandoned.  A small project at Douglas Drive in Mawson Lakes was granted approval in 2015 for 15 student accommodation units. This project has not yet progressed to construction stage and no starting date has been given.

 The median rent for units at Mawson Lakes has been flat over the last five years and currently sits at $323 per week (Dec-15). This is a reflection of two bedroom accommodation, which is the main type of rental accommodation available in Mawson Lakes.  Given the current state of the local private rental market at Mawson Lakes, which naturally competes with PBSA for students, there appears to be limited demand for additional student accommodation. The existing rental accommodation is modern, affordable and generally well under $250 per bedroom for two and three bedroom dwellings / apartments.

100 200 300 400 500 600 700 800 900 1000 2015 2020 2015 2020 UniSA - Mawson Lakes Gap Analysis Total Supply Total Demand Low Scenario Mid Scenario 119 142 373 529

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 79 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Figure 17: Flinders University – Bedford Park Campus Gap Analysis of Low and Mid Scenarios Source: JLL, Department of Education and Training Flinders University Bedford Park Campus  Based on the low propensity scenario there could be demand for an additional 1,008 beds by 2020, resulting in continued supply levels of 11.2 FT students per bed.

 The mid propensity scenario, total bed demand could be in the order of 2,326 beds by 2020. This results in a supply benchmark of 6.6 FT students per bed, a rate that we believe would be aspirational based on benchmark levels of other universities.  The low and mid scenarios both demonstrate a strong requirement for the development of additional accommodation. 12.5 Aspirational Forecasts A fourth “aspirational” scenario was modelled based on high propensity for student accommodation and 12% per annum growth in international student numbers. The results are presented in the Tables 42 and 43.

Strong growth in international students will naturally lead to very strong growth in demand for student accommodation, particular if it is assumed a high propensity of 60% by full-time international students for PBSA. The results of these forecasts are:  Adelaide CBD Campuses would need 11,032 additional beds;  UniSA at Mawson Lakes would need and additional 1,249 beds; and  Flinders University Bedford Park would need an additional 4,415 beds. 500 1,000 1,500 2,000 2,500 3,000 3,500 2015 2020 2015 2020 Flinders Uni - Bedford Park Gap Analysis Total Supply Total Demand Low Scenario Mid Scenario 901 1,008 1,819 2,326

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 80 Page | 80 Table 42: Demand Projection Analysis – Aspirational Growth in International Students and High Propensity Notes: Assumed student growth of 5.11% for domestic students and 12% for international students Source: JLL, Department of Education and Training 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Student Numbers Domestic 26,160 27,497 28,902 30,378 31,931 33,562 2,958 3,109 3,268 3,435 3,610 3,795 13,658 14,356 15,090 15,861 16,671 17,523 International 9,884 11,070 12,398 13,886 15,553 17,419 1,008 1,129 1,264 1,416 1,586 1,776 2,220 2,486 2,785 3,119 3,493 3,912 Total 36,044 38,567 41,300 44,265 47,483 50,981 3,966 4,238 4,532 4,851 5,196 5,571 15,878 16,842 17,874 18,979 20,164 21,435 Propensity Domestic 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% International 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% Demand Domestic 3,924 4,124 4,335 4,557 4,790 5,034 444 466 490 515 542 569 2,049 2,153 2,263 2,379 2,501 2,628 International 5,930 6,642 7,439 8,332 9,332 10,451 605 677 759 850 952 1,066 1,332 1,492 1,671 1,871 2,096 2,347 Total 9,854 10,767 11,774 12,889 14,121 15,486 1,048 1,144 1,249 1,365 1,493 1,635 3,381 3,645 3,934 4,250 4,596 4,976 Supply (existing and proposed) 3,765 3,765 3,765 4,454 4,454 4,454 386 386 386 386 386 386 561 561 561 561 561 561 Implied Demand Ratio (students per bed) 2.6 2.9 3.1 2.9 3.2 3.5 2.7 3.0 3.2 3.5 3.9 4.2 6.0 6.5 7.0 7.6 8.2 8.9 Beds Needed 6,089 7,002 8,009 8,435 9,667 11,032 662 758 863 979 1,107 1,249 2,820 3,084 3,373 3,689 4,035 4,415 Adelaide CBD Campuses University of South Australia Mawson Lakes Campus Flinders University Bedford Park Campus

The Government of South Australia, Department of State Development: Student Accommodation Demand Study COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 81 Page | 81 13 Key Constraints for the Development of Additional PBSA in Adelaide There are a number of influencing factors contributing to the ability of both universities and private sector developers to deliver more PBSA in Adelaide. Some of the key issues we consider are as follows: 1. Demand 2. Physical constraints 3. Finance and feasibility 4. Planning restrictions Demand First of all, understanding the likely demand for PBSA in Adelaide is initially a key consideration.

As detailed within this report, our analysis of the potential existing gap in the provision of accommodation and also a scenario tested five year forecast indicates that there is the potential for the supply of an additional 1,700 – 16,696 bedrooms in the market. These bed numbers represent our low propensity scenario forecast all the through to our high propensity scenario forecast for all universities. Developers and investors will carry out their own due diligence in order to test the perceived level of demand. The ability of Adelaide universities to continue to attract, and grow student population is a key consideration.

A coordinated approach to marketing higher education in Adelaide and Adelaide’s universities may help to attract potential students. Physical constraints The key physical constraint relates to the availability of land and suitable sites for the delivery of PBSA in proximity to University campuses. UniSA’s City East campus is small and constrained, as it the University of Adelaide. UniSA’s City West campus has expanded in recent years, but the focus had been for education purposes; not student accommodation. PBSA is therefore most likely on land in close proximity to the universities.

Compared with CBDs of Brisbane, Melbourne and Sydney, the Adelaide CBD is relatively under-developed and provides numerous opportunities for further development. Student accommodation, however, will compete with other land uses for development sites that become available. In the current market, the demand for most commercial land uses is constrained, with the main interest in development sites coming from the residential sector. We note that the education sector (particularly UniSA) has also been active in acquiring land to expand its City West campus over the past decade.

The student housing sector has also successfully sourced sites in the CBD over the past decade to develop PBSA.

It has not appeared to be a limiting factor in the growth of the sector. Sites have been at times in premium locations, including the recent purchase of 228-231 North Terrace by Urbanest. This site received a significant amount of interest from a range of parties for a range of potential developments. We also note that 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. Other factors (demand; feasibility) are more likely to have limited new supply.

Both Mawson Lakes and Flinders University are not as physically constrained as the city campuses of UniSA and the University of Adelaide.

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 82 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Feasibility The feasibility of delivering new PBSA is a critical consideration. Feasibility is determined by the interrelationship between the rental levels that students appeared to pay, the costs of running student accommodation, build costs and the value of student accommodation. Rental levels for high quality PBSA in Adelaide (for example Urbanest North Terrace) are somewhat lower than headline rents in other state capital cities across Australia.

The availability of a quite large supply of private residential dwellings that are offered to students to rent at circa $200-$250 per student per week creates a certain ceiling for rental levels. PBSA must compete against this private rental accommodation offering by virtue of the product mix, the level of amenities provided within the building and the provision of services and pastoral care.

The direct costs of operating PBSA will influence feasibility in terms of the net income that can be generated from the operational residences. Direct costs such as labour and land tax will often influence the overall running costs significantly. Build costs have in the last 12 months have risen across many locations in Australia – in part driven by a flurry of activity in the residential construction market. This has put further pressure on the feasibility of delivering new PBSA. It is possible to consider cheaper construction techniques with low rise development. We are aware of one accommodation provider in the marketplace offering modular delivery of student accommodation – with build costs we are advised at circa $55,000 per bedroom.

This is significantly lower than we would expect for high-rise modern PBSA, where build costs are often in the range of 85,000 – $100,000 per bed, excluding the cost of land.

Finally, the value of operational student accommodation (driven by investment appetite into the asset class) will impact on the residual land value approach to analysing sites which could be suitable for the delivery of PBSA. As the market begins to mature and yields tighten, the value of PBSA increases and feasibility of delivering new accommodation can improve. However, at this time, the market for large scale institutional quality PBSA is relatively immature and there have been few transactions. We anticipate that the levels of transactions will increase during 2016, with volumes continuing to increase from 2017 onwards.

Planning Restrictions Planning restrictions and the approach to student accommodation within the planning system can limit the deliverability of new PBSA. Critical consideration is the density of PBSA that can be delivered, opposed to other land uses.

With the exception of residential apartment development, current demand for other land uses in the Adelaide CBD is soft. Furthermore, some of the sites that have been granted approval for a residential development appear to have been abandoned or at least deferred. The current market has reduced the short to medium term competition between land uses. 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.

We note that major PBSA development applications with a development value of more than $10 million would be assessed by the Development Assessment Commission, a state government body, rather than Adelaide City Council. Mawson Lakes Town Centre, which is adjacent to the UniSA Mawson Lakes campus, allows for a broad range of uses and would readily accommodate student accommodation. There remain a number of development sites in the town centre and near the Mawson Lakes station that could accommodate residential or student accommodation. The UniSA campus is also a significant landholding, and could accommodate additional development should there be a lack of development sites in other locations.

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 83 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Flinders University is a significant land holding and nearby Tonsley has a range of development opportunities and flexible zoning. Outside of these two locations, the existing zoning of land is somewhat more limiting for PBSA, being predominantly Residential Zone. Land Tax South Australia has the highest rate of land tax of the mainland states. Table 43 illustrates the land tax payable on land holdings of $5 million and $10 million by state.

The savings in the other four mainland states are:  Between $75,487 and $86,112 per annum on an assessed land value of $5 million;  Between $158,612 and $166,087 per annum on an assessed land value of $10 million; Assuming the development of a 500 bed student accommodation building on land with a site value of $5 million, the land tax alone costs $312 per bed per annum ($6.03 per week). Assuming the development of a 500 bed student accommodation building on land with a site value of $10 million, the land tax alone costs $682 per bed per annum ($13.12 per week). Land tax is payable by the owner of land.

However, some leases will make provision for the tenant to cover the cost of the land tax.

Table 43: Land Tax Comparisons, Mainland States, 2016 Source: JLL, Department of Education and Training 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

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 84 The Government of South Australia, Department of State Development: Student Accommodation Demand Study 14 Options to deliver accommodation at $200-$250 per week 14.1 Overview In addition to considering the delivery of additional PBSA at a price point of $200-$250 per week, we have considered within this section, the ability to support the market to deliver accommodation from the existing supply of private rentals or PBSA in Adelaide with rents below that price point.

In terms of considering the delivery of additional PBSA, rental levels at $200-$250 per week will define the overall project cost for delivering new accommodation based on appropriate investor returns. Based on our experience of valuing high quality new PBSA for national developers of student accommodation, rents at below $200-$250 per week does not support the cost of acquiring land in the Adelaide CBD and building new good quality high-rise accommodation, particularly accommodation with ensuite bathrooms and inclusive of all utilities.

However, we do note that the pricing sections in this report highlight a range of existing accommodation options within this price point in all Adelaide markets (CBD and North Adelaide; Mawson Lakes; Bedford Park). This tends to be self-catered, share accommodation. Furthermore, the fully catered options may provide value for money when the tenancy period of 40 weeks and provision of all meals is taken into account. Alternative construction methods such as modular delivery would therefore need to be considered. 14.2 University Participation In order to help reduce the overall cost of development for new PBSA, universities may wish to participate in the development process, whether it be by way of a public private partnership type arrangement, or a joint venture structure.

The key essence of this type of transaction structure would be that the universities can contribute land at a discount to market or at zero cost. There are a wide range of transaction structures for such projects in the market both in Australia and more mature markets such as the UK. The availability of underdeveloped land from the University may be a key constraint for this option, particularly the CBD-based universities. Both the University of Adelaide and UniSA campuses in the CBD are constrained.

As highlighted later rate rebates apply to student accommodation delivered or managed by Universities as well as the residential colleges in North Adelaide. This is a small saving in the overall development costs but it is an annual saving. Similarly we discuss below the possibility of land tax exemptions for education purposes or the advancement of education. University participation in the provision of student accommodation may be required in both cases. 14.3 Major mixed use developments Opportunities may exist to promote student accommodation as part of large mixed use projects. There are currently a number of significant mixed-used / infrastructure projects in the market, or proposed for Adelaide.

An example of where student accommodation has successfully been delivered within a mixed use development is Frasers at Central Park in Sydney. This development with an overall value of circa $2 billion has included two stages of student accommodation. The first stage provided circa 270 bedrooms, while the second stage providing circa 770 bedrooms.

The schemes have been delivered with the benefit of the national rental affordability scheme (NRAS). The NRAS scheme was promoted by the Commonwealth several years ago on the basis to provide rental housing for low income families. It was adopted by several student accommodation developers and universities to deliver student accommodation. The scheme includes cash and tax incentives from state government, wherein return accommodation under the scheme must be offered for rentals at least 20% below market. There was political backlash against the fact that accommodation was being delivered under this scheme for students and particularly international students.

In late 2014 the scheme was repealed. One potential option to help facilitate delivery of additional PBSA at $200-$250 per week could be a similar type scheme, adapted specifically for students.

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 85 The Government of South Australia, Department of State Development: Student Accommodation Demand Study While there is no suggestion that these schemes were delivered with a lower return on investment compared to other elements of the project, there is greater potential in major mixed use developments to require certain elements to be provided that may otherwise not happen commercially. The delivery of major projects, such as the Old Royal Adelaide Hospital site or the Greater Riverbank Precinct may provide this opportunity.

14.4 Tax incentives Another potential option could be tax incentives for student accommodation operators. Land tax concessions and rate rebates would help the operators to reduce direct running costs and therefore lower rental levels required to make a scheme feasible. Both are discussed below. Rate rebates We note that under the Local Government Act 1999 in South Australia, a 75% or greater rate rebate is available for student accommodation where the University is involved in the provision of the accommodation. The student accommodation premises in the Adelaide CBD and North Adelaide that qualify are the six residential colleges in North Adelaide and the University of Adelaide Village in Grote Street, Adelaide.

We have confirmed with the managers of University Village and with Adelaide City Council that these establishments receive a 75% education rebate.

The relevant Section of the Local Government Act is S165 (2), which read as follows: 165 – Rebate of rates – education purposes (2) The rates on land being used by a university college to provide accommodation and other forms of support for students on a not-for-profit basis will be rebated at 75 per cent (or at the discretion of the council, at a higher rate). We understand that the saving to the University of Adelaide Village would be well in excess of $100,000 per annum, and while on its own may not lead to a saving that will be passed onto students via accommodation fees, as part of a wider package of incentives, it reduces the ongoing running costs.

In Queensland, land is exempt from rating if it is owned by a community organisation, of less than 20ha and is used for accommodation for students.3 We are not aware of specific rate rebates relating to student accommodation in other states under the respective local government legislation. Infrastructure Charges Brisbane City Council has been proactive in its approach to student accommodation with the introduction of a temporary three-year reduction in the Council adopted infrastructure charges for student accommodation developments within a 4 km radius of the Brisbane GPO. Alongside this, Queensland urban utility has introduced a new infrastructure charge category for water and sewerage connections for developments of student accommodation.

As a result, the combined council and infrastructure charges bill for a one-bedroom unit has been cut from about $18,000 to $4,560; a savings of $13,414 per unit. Most states provide a mechanism under their respective Local Government Acts to apply a rate rebate to certain uses or organisations. For example, religious organisations are often exempt from the payment of rates.

One of the main infrastructure charges in South Australia is payable for the open space contribution. The open space contributions are $6,488 per additional title created. If individual units within a student housing development are strata titled so as to sell to investors, then an open space fee of $6,488 will be payable per unit. For a 100 unit development, the upfront fee would be $648,800. This is a clear disadvantage to a strata title model of student accommodation over single ownership model. We understand similar contributions are payable in other states on the basis of the creation of new titles as is the case in a strata development.

3 Local Government Act 2009, Local Government Regulation 2012, Section 73

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 86 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Land Tax Concessions Most states have land tax exemptions for a range of community, religious and education purposes. In South Australia, this includes the following:  Land owned by an association established for a charitable, educational, benevolent, religious, or philanthropic purpose. A student accommodation development would need to be declared by the Commissioner to be exempt.

The grounds for such as declaration are:  That the land is or is intended to be used wholly or mainly for that purpose; or  That the whole of the net income (if any) from the land is or will be used in furtherance of that purpose.

NSW has land tax concessions for some forms of affordable accommodation, including boarding houses and low cost accommodation. Low cost accommodation could potentially be accommodated by students. In the 2015 tax year, low cost accommodation qualifying for this exemption or reductions needed to be within 5km of the GPO and rented for no more than:  $232 for one bedroom accommodation; or  $309 for two bedroom accommodation; or  $386 for three or more bedroom accommodation: There are also provisions to ensure the savings are passed onto the tenant in the form of a rental reduction, improvements to accommodation or .foregoing increases in rent.

Non-profit organisations, including educational institutions that are not-for-profit may also be entitled to an exemption from land tax. While this may not apply to commercial providers of student accommodation, it may apply to universities or religious organisations providing accommodation. Similar to SA, the Land Tax Assessment Act 2002 of Western Australia indicates that land owned by public charitable or benevolent institutions may be exempt from land tax. Whether this would extend to such an organisation providing student accommodation would require a ruling from the relevant Commissioner.

Our understanding is that educational institutions and the advancement of education may fall within this exemption, and student accommodation is considered as one contributor to the advancement of education. 14.5 Planning policy and guidance - examples Brisbane Providing specific planning guidance around student accommodation may help to promote the delivery of more PBSA. Brisbane City Council has been proactive in its approach to student accommodation with the introduction of a planning approval system that can make the process of gaining development approval for student accommodation quicker and more straightforward.

A code accessible development application fits within the code of the City Plan and can be assessed quickly by Council without the need for public notification. Impact perceptible development application is for development that must be assessed against all identified codes and the City Plan as a whole. This is to ensure that identified development impacts are addressed. These applications must be publicly notified to take account of the community views. Rooming Houses legislation in SA There is legislation covering rooming houses (whereby rooms in a house are rents to three or more people).

Rooming houses must comply with the Residential Tenancies Act 1995 and Residential Tenancies (Rooming Houses) Regulations 1999. This covers issues on rental payments / increases, security of rooms, and the rights and obligations of both the manager and tenant.

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 87 The Government of South Australia, Department of State Development: Student Accommodation Demand Study While some students access rooming houses, we do not have information on the quantity of students that are accommodated in such accommodation. It is also likely that most “rooming houses” are private rental dwellings with three or more rooms rented out separately rather than larger multiple dwellings / boarding houses.

Unilodge has a large rental pool of privately owned apartments in buildings throughout the CBD that are leased on a per room basis.

Adelaide CBD We have reviewed the Principles of Development Control in the Adelaide (City) Development Plan that specifically relate to student accommodation in the City of Adelaide. The requirements for student accommodation are covered in the Council Wide Objective for Student Accommodation and Principles of Development Control 10-13. The Principles tend to be more lenient in relation to bedroom size, unit size, storage, private open space and car parking than for other residential accommodation, although they are not specific. This recognises that communal facilities are common in student accommodation (e.g.

for cooking, laundry, shared socialising space) and this creates a more efficient use of space.

Application of the Principles of Development Control should in turn help reduce development costs per units / bedroom for student accommodation, although as previously discussed, the development costs per bedroom for good quality PBSA dictates the end pricing, which is typically above $200-$250 per person per week for managed accommodation with ensuite, communal facilities and utilities. The relevant Principles of Development Control are reproduced below: 10 Residential development specifically designed for the short-term occupation of students may provide reduced internal floor areas, car parking, storage areas and/or areas of private open space provided that: (a) residents have access to common or shared facilities that enable a more efficient use of space (such as cooking, laundry, common rooms or communal open space); (b) every living room has a window that provides an external outlook and maximises access to natural light; (c) the development is designed to enable easy adaptation or reconfiguration to accommodate an alternative use; (d) the development is designed to maximise opportunities to access natural ventilation and natural light; (e) private open space is provided in the form of balconies and/or substituted with communal open space (including rooftop gardens, common rooms or the like) that is accessible to all occupants of the building; and (f) the internal layout and facilities provide sufficient space and amenity for the requirements of student life and promote social interaction.

11 Internal common areas should be capable of being used in a variety of ways to meet the study, social and cultural needs of students. 12 Development should provide secure long-term storage space in both communal and private areas. 13 Student accommodation with shared living areas should ensure bedrooms are of a suitable size to accommodate a single bed, book shelves, a desk and workspace, and a cupboard/wardrobe. 4 4 Adelaide (City) Development Plan, Consolidated 24 September 2015, P18

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 88 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Residential apartments available for private rent in the CBD are a major source of accommodation for students.

Under the Adelaide (City) Development Plan, the requirements are more onerous guidelines, partly in order to provide flexibility to a range of occupiers (families, couples, students etc.). For example, the minimum unit sizes for residential apartments suggested under the Adelaide (City) Development Plan are:  Studio: 35sqm  1 bedroom apartment: 50sqm  2 bedroom apartment: 65sqm  3 bedroom: 80sqm Requirements for private open space, storage and car parking further add to the cost of delivery. 14.6 Planning legislation in the UK This section specifically discusses what is commonly termed in the UK as Houses in Multiple Occupation (HMOs).

The primary mechanism for assessing HMOs in the UK has been through the planning system, and in particular the ‘Article 4’ legislation, which has been devolved to local authorities. Background The Housing Act 2004 placed a statutory duty on local authorities to licence larger (and therefore higher-risk) HMOs. The mandatory HMO licensing regime addresses poor management practices and aims to secure a reduction in death and injury from fire and other health and safety hazards, and ensures adequate provision of amenities.

The number of HMOs has steadily risen since the Act was passed, with a noted acceleration in numbers since the financial crisis of 2008. The Government, in reply to a question in Parliament in 2014, estimated that the number of HMOs has risen from 381,361 in 2003-4, to 462,693 in 2012-13. Article 4 The General Permitted Development Order (GPDO) was introduced in 1995, which granted automatic planning permission for certain types of development, known as permitted development. Article 4 of the GPDO gives Local Planning Authorities (LPAs) the right to restrict some types of permitted development.

It was originally intended to enable LPAs to preserve the character of conservation areas and it is still used for this in places such as Brighton and Bath.

In 2010, HMOs were given their own usage class (Class C4) under the planning laws. Previously HMOs had been categorised as Class C3, small dwelling houses used as a main residence by families or groups of up to 6 people living together as a single household. A Class C4 property is defined as a small dwelling house occupied by between three and six unrelated individuals who share common amenities such as a kitchen or bathroom. Most importantly, under the GPDO, change of use between Class C3 and C4 or vice versa counts as a permitted development.

Councils can now use Article 4 to restrict change of use between the two classes as a permitted development.

UK Government guidance states that LPAs ‘should consider making Article 4 directions only in those exceptional circumstances where evidence suggests that the exercise of permitted development rights would harm local amenity of the proper planning of the area’. Issues associated with implementation The legislation is relatively recent and so there has not been any systematic analysis of how many local authorities have chosen to implement it, but anecdotally it appears to have been used in local authorities where pressure over availability of housing generally has created political pressure to control the proliferation of HMOs.

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 89 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Not all HMOs are occupied by students – it is common for young professionals to rent HMOs – but such political pressure has tended to arise where there is a lack of Purpose Built Student Accommodation (PBSA), and local universities are growing their student numbers. In this instance it has often been used by LPAs to freeze the quantity of HMOs in a town by forcing landlords to apply for planning permission (which effectively discourages most).

14.7 Specific tenancy legislation for students Another option is for students is specific rental tenancy agreements that address the particular needs of students, but are also drafted in a way to assist international students coming into South Australia. In the UK for example, students will typically enter into an assured short hold tenancy (AST). In South Australia, the education sector and others have raised the issue that the current tenancy agreements and boarding house arrangements are not suited to student accommodation, are inadequate and should be addressed. In its submission in relation to the Review of the Residential Tenancies Act 1995 Discussion Paper, the Accommodation Working Party of Education Adelaide requested that there be a definition specifically for student accommodation, that minimum standards for student accommodation be set, and a system of licensing by landlords to operate student accommodation be considered.

The submission notes the importance of the private rental market to international students, with an estimated 30% of all rented accommodation in the City of Adelaide being occupied by international students. 5 It also highlights 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).

There may be difficulties in considering specific legislation for students across multiple forms of accommodation when they occupy accommodation across a wide range of forms that are not exclusively available to students. 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. We have briefly reviewed some of the legislation interstate and make the following comments. We note that this summary is by no means comprehensive, with the aim being to provide a broad indication of current legislation and trends:  There is no separate definition of student accommodation under the Residential Tenancies Act 2010 NSW  There is no separate definition of student accommodation under the Residential Tenancies Act 1997 Victoria.

The Act specifically excludes accommodation for students affiliated / on the premises of schools or education institutions;  The Residential Tenancies and Rooming Accommodation Act 2008 in Queensland does not apply to student accommodation provided by education institutions. However the act does apply more broadly to rooming accommodation agreements with more than three rooms available for occupation;  There are proposed amendments to the QLD legislation, which aims to provide for minimum standards for rental and rooming accommodation in QLD in order to protect the most vulnerable tenants in the community.

The Bill also makes provision for the settlement of disputes between lessors and tenants arising from these minimum standards. The proposed minimum standards are in relation to the following matters: o (a) sanitation, drainage, cleanliness and repair of premises; o (b) ventilation and insulation; o (c) protection from damp and its effects; o (d) construction, condition, structures, safety and situation of premises; o (e) the dimensions, cubical extent and height of rooms in the premises; o (f) privacy and security; o (g) provision of water supply, 5 Education Adelaide ,Student Accommodation Working Party Submission to Housing Improvement Bill 2012, August 2012

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 90 The Government of South Australia, Department of State Development: Student Accommodation Demand Study o storage and sanitary facilities; o (h) laundry and cooking facilities; o (i) lighting; o (j) freedom from vermin infestation; and o (k) energy efficiency. 14.8 Private accommodation to suit the student market Given that a large proportion of the private rental market in the Adelaide CBD is expected to attract students, there may be an opportunity to develop apartment product that best suits the student market. For example, a sense of independence and privacy are important in share accommodation - three bedroom dwellings with three small ensuites and bedrooms of similar size may be better suited than a typical three bedroom dwelling with large master suite and two small bedrooms.

Such a product may also suit young professionals looking for accommodation close to their workplace, so there would be competition amongst different segments of the rental market. Based on the pricing analysis presented earlier, a three bedroom three bathroom unit in Adelaide is expected to be able to be developed and rented out in the Adelaide CBD within the price point of $200-$250 per week ($600-$750 per week for what may be a moderate sized apartment). Furthermore, there is less likelihood that the international student market would require on-site parking, which may provide a saving on development costs.

14.9 Student Accommodation Providers Accreditation One opportunity to facilitate the delivery of quality accommodation would be to improve the provision and consistency of existing accommodation (both in the private rental sector and within PBSA) through an accreditation system and regulation of landlords. Such a scheme could be applied only where accommodation is for the exclusive use of students.

This would provide consistency in standards and is particularly relevant in the private rental sector, where pricing is likely to be more aligned to $200-$250 per person per week (particularly in two and three bedroom apartments). We are aware that the recently established South Australian Student Accommodation Association (SASAA) has been promoting accreditation and has drafted a framework for providers. We have not sighted this draft framework, but note that such accreditation systems are used in the student accommodation market in other countries as outlined below. There are a number of considerations around the application of such systems, whether they be self-regulated, or administered by a central body (such accreditation will inevitably carry cost).

There are several examples of student accommodation operator and landlord regulation and accreditation in both the UK and New Zealand. We provide the following overview of a number of these accreditation schemes. New Zealand Accreditation - Quality Mark Quality Mark (Qualmark), is New Zealand tourism’s official quality assurance organisation. Part of this quality assurance system is an accreditation for student accommodation which has been established in New Zealand and operating for approximately 8-10 years. It was driven by Auckland University and Massey University and was originally aimed at providing reassurance to international students on the quality of accommodation they could expect.

Its aim is to provide a consistency of quality amongst providers as a point of reference for students when choosing accommodation.

The Student Accommodation category of Qualmark applies to student accommodations provided by Universities and Polytechnics. Accommodation provided by other alternative tertiary education providers are also eligible for this category of Qualmark. While there are a number of universities who have adopted Qualmark it is more difficult for private providers to adhere to and therefore the number of private participants is low. Halls of residence, student apartments, and also self-catering flats or units that meet specific assessment criteria are eligible to apply for the Qualmark Star grading. Once applied the accommodation provider receives immediate 'Applied For' Qualmark status.

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 91 The Government of South Australia, Department of State Development: Student Accommodation Demand Study Where the Student Accommodation criteria differs from other Qualmark categories, is the emphasis on individual student support and pastoral care. This category covers areas of communications, safety and security, social activities, staff availability, residential support and satisfaction. The University of Auckland has had considerable involvement in the development of the Student Accommodation Qualmark criteria, in addition to wide consultation with the New Zealand Association of Tertiary Education Accommodation Professionals (NZATEAP).

Table 44 highlights the Qualmark Star Grade definitions and Table 45 shows the criteria for assessment.

Table 44: Qualmark Star Grade Definitions Star Grade Definitions  Acceptable  Good  Very Good  Excellent  Exceptional Applied For Undergoing Assessment “Endorsed” Definition Professional and Trustworthy Source: Qualmark Table 45: Qualmark Assessment Criteria # of Minimum Criteria Weighting Overall aspect and appearance 4 8% Cleanliness (also included in other areas as well) 5 10% Residential Care (includes safety and security) 30 30% Bedrooms 15 10% Bathrooms 11 10% Food provision/preparation 13 14% Public/shared areas and facilities 20 15% General business practices 8 3% Source: Qualmark UK Accreditations A number of accreditation systems maintained in the UK by public and private sector organisations.

These include the following: Unipol Unipol is a charity organisation set up by five tertiary education institutions in Leeds and Bradford. Unipol’s objectives are “the advancement of education by providing and managing accommodation and related services for educational institutions, their students and other persons associated with educational institutions and to develop and foster excellence and expertise in this field”. Unipol runs a number of Codes. These are accreditation schemes which:  Set professional standards for student accommodation and its management that member owners and agents voluntarily commit themselves to meeting;  Check compliance with those standards;  Give students assurance and confidence about the quality of what they are signing up for when they opt for a Code property; and

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 92 The Government of South Australia, Department of State Development: Student Accommodation Demand Study  Give students a robust complaints process if things go wrong.  All the Codes have been developed in partnership with their local universities and students’ unions. The Unipol administers a number of Codes:  The Unipol Code for shared student housing, which accredits private landlords in Leeds, Bradford and Nottingham (there is a version for each city);  The Unipol Code for owner/occupiers providing accommodation in their own homes in the student private rented sector in Leeds, Bradford and Nottingham (there is a version for each city);  Two National Codes that accredit larger developments – one for education institutions and one for commercial providers;  The AFS/Unipol Code – a national accreditation framework for the web-based market in private sector shared student housing.

Unipol runs a number of accreditation schemes aimed at giving students confidence in renting from private landlords and agents. Unipol administers National Codes that accredit larger developments, but also has bases in Leeds, Bradford and Nottingham which accredit private landlords. Renting from a Code landlord offers reassurance to students that standards have been checked and that Unipol can offer assistance if needed. Hallbookers Hallbookers is the UK’s student accommodation review website, which helps students to find accommodation by using reviews from other students rather than relying solely on the University or accommodation provider’s marketing material.

The website allows students to provide help, advice and support to other students looking for accommodation. The website is supported by over 15 Student Unions and the National Union of Students, because it puts pressure on providers to lift their standards and gives students an independent advice platform. Hallbookers mission is:  To give all UK students the opportunity to use other students' reviews to find the best student accommodation;  To help hall providers push up standards by giving them better feedback from students; and  Provide an independent platform whereby students can freely & publicly discuss student accommodation standards.

ANUK and UUK The ANUK code and the UUK code are both minimum standards for accreditation rather than a formal ratings system. ANUK ANUK (Accreditation Network - UK) was formed in May 2002 in response to the increasing popularity of accreditation across the UK to publicise, promote and share good practice in accreditation. Accreditation started to be used as a means of acknowledging and encouraging good private landlords in the early 1990s in the student sector. These early accreditation schemes were operated by Higher Educational Institutions or their agencies and some local authorities. Increasing numbers of local authorities began to operate accreditation schemes.

As a result, the Government commissioned the University of Birmingham to undertake research into the operation and benefits of accreditation in 1999. The positive findings encouraged the Government to support and encourage accreditation and in 2001 comprehensive guidance was issued to local authorities on how to successfully develop and operate accreditation schemes.

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 93 The Government of South Australia, Department of State Development: Student Accommodation Demand Study This resulted in the first National Accreditation Scheme Fair being hosted in Leeds in 2002. Feedback from this event indicated that a wide range of private rented sector stakeholders wished to form a networking organisation to promote accreditation which resulted in the formation of ANUK. ANUK is managed by an Executive Committee and Forum comprising representatives from local authorities, national and local landlord associations, the voluntary sector, the Chartered Institute of Environmental Health, the Office of the Deputy Prime Minister and the National Approved Letting Scheme.

The work of representatives is voluntary.

The four core ANUK accreditation values are:  The Declaration: to be accountable there must be a voluntary declaration by the supplier or manager of the housing to a set of processes or standards (normally both). The declaration should be regular and normally should take place once every three years.  Verification: A scheme must verify that those who sign up to meet standards are doing so. Whatever the verification process is, it must be public, realistic and achievable. A complaints system alone is not sufficient to ensure verification.

 Continuing Improvement: The notion of continuing improvement sets the mental tone for accreditation: it is about doing better from a base standard and accepting that there is always room for improvement in management outputs.

 Complaints: There must be a proper complaints process that should be simple, inclusive, transparent, rapid and known. UUK The UUK Student Accommodation Code has been developed by Universities UK and GuildHE to ensure that university-managed housing is of a good standard. The Code was introduced in 2006 and many university accommodation buildings are participants of the Code.

The Code protects students’ rights to safe, good quality accommodation and outlines what should be expected from their accommodation as well as their responsibility as a tenant of that accommodation. Each university and college that participates in the Code is independently audited every three years to ensure that its management arrangements for student accommodation are up to the high standards expected by The Code. The audit process follows the following four step process:  Talking to students or student representative bodies.

 Inspecting documentary evidence.  Conducting a physical inspection of a sample of the accommodation.

 Investigating any formal complaints made by students. 14.10 Accreditation of Letting Agents Students will source rental accommodation lettings from a wide range of sources. These may include well established letting agents, but particularly the international student market may tend to be attracted to lesser known sites as they promote flexible contract arrangements and are perceived to be less time consuming to secure accommodation. They are promoted via social media platforms which are accessible to students before they arrive in Australia.

Our discussions with other accommodation providers indicate that the more affordable the rents and the flexible nature of the arrangement between landlord and student, quickly adjusts to be in favour of the landlord once the student has made a commitment to the tenancy. The sites are attractive to accommodation providers who prefer not be restricted by the obligations of a traditional landlord / head tenant / tenant relationship as defined by the relevant legislation which allows them to fall out of the jurisdiction of SACAT (the Local Tenancies Tribunal).

Easy access to these sites through social media, channels students away from the traditional University accommodation messages / resources, and the time-consuming nature of searching for professionally

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 94 The Government of South Australia, Department of State Development: Student Accommodation Demand Study managed rental accommodation secured under standard tenancy agreements is anecdotally leaving more students stuck in poor quality accommodation. We provide a summary of several “student-centric” private rental websites that are active: Adelaidebbs (http://www.adelaidebbs.com/bbs/portal.php) is a Chinese forum and news site aimed to provide Chinese speaking students and professionals with advice and information on all areas of day to day life in Adelaide.

These areas include, but not limited to, renting and housing advice, Adelaide specific news, medical advice, legal advice, potential job opportunities and advertised rental accommodation options for students and professionals.

Gumtree (http://www.gumtree.com.au) is an online free to use network that offers online classifieds and advertisement in a whole range of areas, expanding into employment opportunities, rental accommodation and potential house mates. Share-Accommodation (http://www.share-accommodation.net/) is an online service that allows for individuals to find and meet potential housemates and flatmates in the same situation as well as allow others to advertise and search for additional housemates, flatmates or roommates. The service provides detailed information about each individual in order to match with a person that has similar traits and expectations in a rental property.

Flatmates (https://flatmates.com.au) and Flat share (http://www.flatshare.com.au) are both online networks that allow people who are seeking a housemate/s to advertise their property for free. Rantau (http://rantau.com.au/) is an accommodation website created primarily for Malaysian Students within Australia. It is aimed at those travelling to Australia and offers long term accommodation, Malaysian owned homestays and short term accommodation.

COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All Rights Reserved Page | 0 Page | 0 Noral Wild Head of Health & Aged Care & Student Accomm.

Services L40, 101 Collins Street Melbourne VIC 3000 +61 3 9672 6522 Noral.wild@ap.jll.com David Snoswell Director, Strategic Consulting L22, 25 Grenfell Street Adelaide SA 5000 + 61(8) 8233 8843 david.snoswell@ap.jll.com

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