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 - Prepared for the Government of South Australia - Department of State Development
May 2016

Adelaide: Student Accommodation
Demand and Supply Analysis
Prepared for the Government of South Australia – Department of State
Development

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Adelaide: Student Accommodation Demand and Supply Analysis - Prepared for the Government of South Australia - Department of State Development
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

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Adelaide: Student Accommodation Demand and Supply Analysis - Prepared for the Government of South Australia - Department of State Development
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

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Adelaide: Student Accommodation Demand and Supply Analysis - Prepared for the Government of South Australia - Department of State Development
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

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Adelaide: Student Accommodation Demand and Supply Analysis - Prepared for the Government of South Australia - Department of State Development
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

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Adelaide: Student Accommodation Demand and Supply Analysis - Prepared for the Government of South Australia - Department of State Development
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

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Adelaide: Student Accommodation Demand and Supply Analysis - Prepared for the Government of South Australia - Department of State Development
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.

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Adelaide: Student Accommodation Demand and Supply Analysis - Prepared for the Government of South Australia - Department of State Development
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                          FT Students
                                                                   Total Rooms
                                                   Students                         Per Bed
 University of South Australia and University of
                                                     33,713             3,765         9.0
 Adelaide CBD Campuses
 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;

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The Government of South Australia, Department of State Development: Student Accommodation Demand Study

          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.

                                                                                                              International
                              Domestic Students            Domestic Students       International Students
                                                                                                            Students forecast
                             propensity for PBSA            forecast growth         propensity for PBSA
                                                                                                                 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;

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The Government of South Australia, Department of State Development: Student Accommodation Demand Study

                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.

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The Government of South Australia, Department of State Development: Student Accommodation Demand Study

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;

 Assessed value of land                   $5 million                   $10 million
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

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,

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The Government of South Australia, Department of State Development: Student Accommodation Demand Study

           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.

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The Government of South Australia, Department of State Development: Student Accommodation Demand Study

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.

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The Government of South Australia, Department of State Development: Student Accommodation Demand Study

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

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The Government of South Australia, Department of State Development: Student Accommodation Demand Study

  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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The Government of South Australia, Department of State Development: Student Accommodation Demand Study

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             63% / 37%
                                                                                 students

       Domestic     undergraduate                 /     79% / 21%              Domestic full-time / part-         65% / 35%
        postgraduate students                                                    time domestic students

       International undergraduate                /     67% / 33%              International full-time / part-    80% / 20%
        postgraduate students                                                    time international students

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)

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The Government of South Australia, Department of State Development: Student Accommodation Demand Study

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

                                        Total Full-time and Part-time          International Full-time and Part-        Percentage of International
            Campus
                                                   Students                             time Students                           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
                                        1
international students across Australia .

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

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The Government of South Australia, Department of State Development: Student Accommodation Demand Study

 3.2 University of South Australia – City East and West Campuses
Courses and Use
Students at UniSA’s City East campus study:

         Construction Management;                                             Pharmacy and Medical Sciences;
         Geographic Information Systems;                                      Physiotherapy;
         Health Sciences;                                                     Podiatry;
         Nursing and Midwifery;                                               Population Health; and
         Planning and Geoinformatics;                                         Surveying.

Students at UniSA’s City West campus study:

         Arts;                                                                Commerce;
         Architecture and Design;                                             Law; and
         Business;                                                            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

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The Government of South Australia, Department of State Development: Student Accommodation Demand Study

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.

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The Government of South Australia, Department of State Development: Student Accommodation Demand Study

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

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The Government of South Australia, Department of State Development: Student Accommodation Demand Study

Table 5: University of South Australia – City East and West Campus Country of Origin Trends

                            Full-time                                Full-time                           Full-time                       Full-time                   Full-time
        2010                                           2011                              2012                                 2013                            2014
                            Students                                 Students                            Students                        Students                    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.

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The Government of South Australia, Department of State Development: Student Accommodation Demand Study

 3.3 University of South Australia – Mawson Lakes Campus
Courses and Use
Students at UniSA’s Mawson Lakes campus primarily study:

         Applied Science;                                                     Environmental Studies;
         Civil Aviation;                                                      Information Technology;
         Computer Science;                                                    Science; and
         E-Commerce;                                                          Sports Science.
         Engineering;

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.

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The Government of South Australia, Department of State Development: Student Accommodation Demand Study

Figure 3: University of South Australia Mawson Lakes Campus Map

Source: University of South Australia

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The Government of South Australia, Department of State Development: Student Accommodation Demand Study

Table 6: University of South Australia – Mawson Lakes Country of Origin Trends

                            Full-time                                Full-time                           Full-time                       Full-time                   Full-time
        2010                                           2011                              2012                                 2013                            2014
                            Students                                 Students                            Students                        Students                    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.

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The Government of South Australia, Department of State Development: Student Accommodation Demand Study

  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             97% / 3%
                                                                                   students

       Domestic     undergraduate                 /     79% / 21%                Domestic full-time / part-         77% / 33%
        postgraduate students                                                      time domestic students

       International undergraduate                /     51% / 49%                International full-time / part-    85% / 15%
        postgraduate students                                                      time international students

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)

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