Purpose built student accommodation could help ease Australia’s housing crisis
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Photo by VinĂcius Neves
In a bid to address Australia’s ongoing housing crisis, a newly approved purpose-built student accommodation (PBSA) project in Newcastle is set to offer some much-needed relief. The project, spearheaded by Sydney-based developer Bloc. Living, aims to alleviate the pressure on housing in areas where students and average renters compete fiercely for vacancies.
Bloc. Living has secured approval for a suburban PBSA co-living development in Jesmond, a suburb in the City of Newcastle. The development is strategically located just 350 metres from the entrance to the University of Newcastle’s Callaghan campus, and a mere 9 kilometres west of the Newcastle CBD. This proximity is expected to make it an attractive option for students, thereby freeing up housing stock for families and other renters in need.
The developer’s spokesperson highlighted the potential impact of the project, stating, “Our smaller scale purpose-built living developments will provide residents with convenient and well-designed apartments close to the University and nearby shops and hospitals.” The spokesperson further emphasised the benefits of the co-living model, noting that it “takes away the stress of finding and vetting suitable roommates, signing leases on behalf of roommates, buying furniture and setting up, paying utility bills, Wi-Fi bills and will allow residents to adjust to their life changes.”
The development will feature a three-storey complex centred around a communal courtyard, comprising 53 studio units with extensive indoor and outdoor communal living areas. This design is intended to foster community connections among residents, as opposed to the isolation often experienced in larger apartment towers. “The smaller scale of these suburban co-living developments allow for greater connections between residents rather than living in anonymous towers,” the Bloc. Living spokesperson explained.
The Jesmond project is not the only initiative Bloc. Living has undertaken to address housing shortages. The developer has also received approval for a similar co-living development in Wagga Wagga, New South Wales. This project is located approximately 400 metres from the Wagga Base Hospital and the new UNSW Rural Medical Clinic. It aims to provide accommodation for medical professionals, hospital staff, and students in the area, thereby addressing the housing needs of a different demographic.
Construction of the Jesmond PBSA is expected to take approximately 16 months, with an estimated end value of over $17.5 million upon completion. The site at 9 Gothic Street, Jesmond, is currently on the market for sale, with Brent Sinclair, Partner and Head of Agency at Knight Frank’s Newcastle, overseeing the sale process.
The approval of these developments comes at a critical time, as higher density suburbs in major cities struggle with the demand from both domestic and international students. This demand often leaves families and other renters with limited options, exacerbating the housing crisis. The hope is that projects like the one in Jesmond will provide a template for similar developments across the country, easing the burden on the rental market.
Bloc. Living’s approach to PBSA and co-living developments reflects a growing trend towards innovative housing solutions that cater to specific community needs. By offering purpose-built accommodations close to educational institutions and essential services, these projects not only support students but also contribute to the broader effort of resolving housing shortages in high-demand areas. As more developers consider such models, there is optimism that they could play a significant role in addressing the housing challenges facing Australia today.