Are students the secret to new life in our CBDs?
A growing population of international students may drive down office vacancy rates and improve the vibrancy of our CBDs. But it demands a shift in thinking, says the Property Council’s Ruth Palmer.
Palmer, the Property Council’s executive director in the Northern Territory, has just released new research which outlines how international students can boost economic growth and activate tired CBDs.
“University student enrolments in tertiary courses have seen double digit growth in each year of the last decade,” Palmer says.
According to the Australian Government, almost 565,000 international students were studying in Australia in July 2017 – 15 per cent more than were here 12 months earlier.
China accounts for 29 per cent of students, followed by India (11%), Nepal (4%), Malaysia (4%) and Vietnam (4%). Students are also arriving from Bangladesh, the Philippines, Taiwan and South Korea in growing numbers.
Palmer says international students come from highly-urbanised environments, and the suburban university model of the past does not cater to their needs.
“International students want to be close to public transport, activity and employment. They want to be in the CBD,” she says.
Smaller cities around Australia are already capitalising on the international student boom.
In Newcastle, expansion of university facilities in the CBD corresponded with a 296 per cent increase in property development approvals in just two years. Commercial and retail vacancy rates fell from 20 per cent in 2008 to four per cent in 2015. Development approvals rose from $73 million in 2013-2014 to $289 million in 2015-2016.
A $1 million investment in university facilities in Launceston is set to revive its city centre. An additional 12,000 students are expected to live and study in the city, while 3,000 new jobs will be created. This translates into an additional $362 million each year in gross state product, including $27 million from interstate and international students alone.
Palmer says both of these cities are good examples of how tertiary students can fill the hole left by declining manufacturing industries.
“Both cities have activated their CBDs to stimulate growth by making higher education more visible, more engaging and more attractive.”
But enticing a greater number of international students requires innovative approaches to city activation, Palmer adds.
“In Darwin, for example, we need investment from all levels of government, as well as education providers. This could be achieved through a strategic partnership such as a City Deal,” she says.
Programmed event planning must support sustained activation of CBDs, and student accommodation needs to be safe and culturally-appropriate to encourage independence and socialisation.
The Property Council’s report outlines five steps that education services must consider:
- A strategic and robust survey to determine what students want from teaching facilities and purpose-built accommodation.
- A strategy and plan for education infrastructure including the enabling infrastructure required to make it work.
- A risk assessment framework to evaluate options.
- Extensive stakeholder consultation about the options for development.
- Leveraging existing relationships with universities to broaden exposure to national and international education providers.
“These steps are critical if education facilities are to drive economic growth,” Palmer says.
“We know that the Northern Territory Government is looking to accommodate more students in the Darwin CBD. This report provides additional impetus.”
Download Benefits of increased employment and tertiary students in the Darwin CBD.