Sydney has been highly popular among local and international students for its high standard of education and excellent student life. Its salubrious climate, happening lifestyle, vibrant culture, world-class infrastructure and state-of-the-art educational institutions have made it a name to reckon with in the industry. A huge percentage of student population visits the metropolis to take advantage of the hub of education.
Thus several projects of commercial real estate in Sydney are dedicated to catering to the needs of the student residents. The biggest student accommodation provider in Australia, Scape has continued the tradition and has submitted its plan to erect five student towers in Sydney to fulfil the needs of students after the COVID-19 pandemic is over.
The city will have to deal with a sea of learners post the pandemic, and these buildings will help them to settle down with comfort and ease. The ambitious project is a brave step for the company which is planning to recover quickly and restore the pace of the industry.
The Project Will Revive Construction Jobs and Economy
One of the significant consequences of the pandemic is that several people have lost their jobs and are struggling to survive. The proposed buildings will generate 1800 construction jobs and will help the economy with a contribution to the tune of $2 billion. It will also create pressure on the government to bring the students back into the classrooms in a safe and secure manner.
The project sites have been identified and include the four corners of the intersection of Anzac Parade and Todman Street close to the University of New South Wales. The buildings will range between six and 19 storeys and will offer over 1650 living spaces to undergraduates and postgraduates. The project is in line with the Kensington and Kingsford town centres (K2K) planning strategy and proposal, which has allowed increasing the height of buildings in the corridor.
COVID-19 Has Not Dampened the Plans of Scape
The rising number of coronavirus affected people in NSW and the lockdown has created an undesirable nervousness and hostility in the industry. Several developers have withdrawn their projects due to the uncertainty surrounding the commercial real estate sector. The retail sector has been witnessing the damaging influence of the shutdown. The shopping behaviour of consumers has gone through a transformation as more and more people are opting for online shopping.
However, this has not stopped Scape from taking new strides towards investment and new development. The company acquired Urbanest in March this year for $2 billion without worrying about the changing markets. The acquisition added 7,000 rooms to its student accommodation portfolio.
These rooms are located in 14 buildings positioned in Sydney, Melbourne, Brisbane and Adelaide. It had also taken over 3,510 boarding rooms of Atira for $680 million. The industry leader is backed by giants like Allianz Real Estate, APG Asset Management Asia and AXA Real Estate Investment Managers.
The Majestic Buildings Will Add To the Shining Skyline
Scape Australia is also planning to build 8500sqm of commercial space along with the accommodation. The redevelopment of the region also involves the construction of public spaces including plazas, laneways and multipurpose zones. The futuristic edifice coming up between 111 and 125 Anzac Parade will be designed by SJB and will comprise 564 lodging spaces.
It will cost a whopping $93 million and set new standards in the field of student accommodation. The 19-storey building will consist of 16,000sq m floor space that will extend comfortable boarding options to youngsters.
The structure coming up between 172 and 180 Anzac Parade has been designed by BVN. Containing 19 storeys, the building will be constructed at the cost of $37 million and will consist of 179 boarding spaces. The tower will also have space for commercial tenants who will be fulfilling the retail and entertainment needs of the young residents. These extend an exceptional opportunity to commercial real estate investors to grab property in the remarkable city of Sydney.
The third tower will be built between 391 and 397 Anzac Parade, and will be an 18-storey building designed by PTW Architects. Being constructed at the cost of $74 million, the tower will provide boarding facility to 399 students. The fourth tower will be another 19-storey building in the vicinity with 381 rooms. Standing tall between 182 and 190 Anzac Parade, it will be worth $77.6 million and its design has been developed by Plus Architecture.
Harmonising Sustainability and Environmental-Consciousness
With the bushfire crisis and climate change transforming the Australian way of life, paying attention to sustainability is the need of the hour. Scape is fully aware of their responsibility towards the environment and has ensured that the buildings include Green Star designs. It will be promoting sustainability with the use of rainwater harvesting, e-bikes and shared car rides. The green blanket will be maintained with the construction of rooftop gardens.
It will also fulfil the fitness needs of youngsters by providing indoor and outdoor exercise spaces and breakout spaces that can be used for relaxation. The students will have ample space to study and enjoy their leisure time and socialise in an outstanding environment.
The Way Ahead For Student Accommodations
Despite the disastrous impact of the pandemic on the economy, the UNSW has not witnessed a drastic change in its accommodation occupancy. In fact, it has the lowest vacancy for off-campus boarding rooms. Randwick will continue its high-growth in the future and its population is expected to increase considerably by 2036.
With affordable rental accommodations available in the vicinity, the investors will gain high returns through the rental income. Scape has a bright future ahead with 17 sites under construction across the country. It will help the company to have 16,000 accommodations in its portfolio upon completion.
Scape is hopeful that international students will flock back to the city once the vaccine is out. The maximum entries will be coming from Asia, South America and European countries. It is preparing for the influx that will be managed efficiently by the proposed buildings in Anzac Parade site. Also, the project will assist the NSW Government in its endeavour to promote health and education in Randwick.
Although commercial real estate in Sydney is affected by the pandemic, a slew of new student towers with commercial precincts will help in revitalising the industry with new jobs and economic contributions.
Sophie Barrett is an experienced real estate marketing professional with a specialisation in commercial property market. She has a Masters degree in marketing from the esteemed Melbourne Business School and has several property management certificates to her credit. Her shrewd marketing policies and business acumen have led to the most rewarding property deals in the major capital cities of Melbourne, Sydney and Perth. She is a popular name in the real estate market and has been serving the industry for almost two decades now. CommercialProperty2Sell is proud to partner with her for some astute discussions and advice on the booming sector.
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