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Housing problems loom
Written by DANIEL WILLS, MARIA MOSCARITOLO | The Advertiser
2009-06-09
 

THE solid growth in international students studying in Adelaide has raised questions about the city's ability to accommodate the influx it hopes to host over the next five years.

South Australia hopes to attract at least 30,000 extra overseas students by 2014, but a recent Adelaide City Council report forecast no new major non-government buildings would begin construction in the year ahead.

Developers concede global financial pressures have already hindered growth.

Two CBD developments that would supply almost 200 student units are yet to begin construction despite being granted council approval, and others remain stalled.

Minister for Further Education Michael O'Brien hopes stalled work will resume in the next 6-12 months as the international outlook improves, including an accommodation block planned on North Tce, with Kuwaiti backing.

The state has a target of increasing overseas student numbers from the 32,000 enrolments expected by the end of this year to 64,000 by 2014.

Two years ago, in an estimates hearing, then-further education minister Paul Caica said SA would not be able to cope with so many students, saying 42,000 by 2013 was more "realistic".

"We could have 67,000, but Adelaide might look like certain parts of Melbourne as far as the manner in which they accommodate and look after their students," he said.

The lack of affordable accommodation close to campuses has been partially blamed for assaults on international students interstate, because they are forced to cheaper outer suburbs where they become easy targets during late night travel.

Mr O'Brien said the Government had since made a commitment to grow the population, with students a crucial part of this.

He met with the university vice-chancellors a fortnight ago to discuss how they plan to expand infrastructure to increase domestic and overseas student numbers.

"I'm sure we'll be able to deal with it, it just comes down to doing the planning and getting the resources in place to get construction underway," he said.

Opposition spokesman David Pisoni said accommodation was already limited and the Government may need to stimulate the market.

"It's not enough to say that the market will fix it," he said.

Property Council SA Chief Executive Nathan Paine said he was confident the market would respond rapidly to student demand once credit conditions improved.

However, he admitted developers were concerned about the long-term prospects of their investment.

"What we've seen over the last two to three years is a significant growth in the number of student beds and we're seeing more and more applications come through," he said.

"There are issues with it though in making it stack up financially, in particular the rents that you can get, the stability of those rents. If the student numbers drop for whatever reason then you have an asset that is limited in terms of other uses."

 
 
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