Cranes and scaffolding dot the skyline in these eastern Sydney suburbs, where development approvals for student accommodation trails residential housing 10 to one.
The 2.5-kilometre stretch of Anzac Parade between Kensington and Kingsford has become a battleground for the local council, which argues it has been “monopolised” by commercial student housing providers.
In the past six years, less than 500 residential dwellings have been approved to be built there, in contrast to more than 5,200 student rooms during the same period.
Randwick Mayor Dylan Parker has labelled the ratio “perverse”.
“We are very supportive of the university and having student education in that precinct, but it’s about getting a reasonable mix,” he said.
“A factor of 10 to one is pretty hard to justify.”
Anzac Parade between Kensington and Kingsford has lots of public transport options, including the light rail. (ABC News: Adam Griffiths)
The Kensington to Kingsford corridor borders the University of New South Wales (UNSW), which has about 70,000 students.
Close to the CBD, it is dotted with bus stops and light rail stations — making it a prime spot for commercial student housing like UniLodge and Scape to build towers.
Council votes for halt
Dylan Parker wants houses prioritised for people living in Randwick, rather than students. (Supplied: Randwick City Council)
At their first meeting of the year, members of Randwick City Council voted unanimously to reaffirm “in-principle support” for a moratorium on any further commercial for-profit student accommodation in the local government area (LGA).
Councillors also agreed to write to NSW Planning Minister Paul Scully, asking him to exclude parts of the area from certain policies which currently apply to co-living housing, including student accommodation.
They hope it will discourage the development of student accommodation, to allow for more residential homes to be built.
“It means that there can be bonus floor space, it exempts developers from the apartment design guide, exempts them from parking requirements, and allows developers to provide essentially micro rooms,” Cr Parker said.
“Here is a clear and easy regulatory change which could deliver real housing for people to live in quite quickly.”
In a statement to the ABC, Mr Scully said the state government was “not considering blanket exemptions for any councils” in regard to those policies.
Anouk Darling says constricting new supply of student accommodation can be a “detriment”. (ABC News: Adam Griffiths)
Three Scape buildings have opened along the corridor in the past two years, with a fourth expected to be completed later this year.
Scape CEO Anouk Darling said purpose-built student accommodation played a “vital role” in easing pressure on other housing.
“Constraining new supply simply pushes more students into an already stretched rental market, to the detriment of all residents,” the provider said in a statement.
“[The Kensington to Kingsford corridor] has the energy and character of a genuine university town and Scape has been central to that transformation.”
Benefits for students
Lars Nolles says he could not secure a house in the Randwick LGA. (ABC News: Adam Griffiths)
UNSW student Lars Nolles, who moved from Orange to Sydney for his studies, said he noticed a high demand for traditional rentals when he was looking for a share house.
“The houses anywhere around the university were just absolutely flooded with applicants,” he said.
“It was either that or I would go somewhere too far out of area, and we would be facing up against families.”
After an “extremely difficult” search, he eventually found a flat outside the Randwick LGA.
“You’ve got the competition between … a whole lot of people who work at the hospital, and the professors, and then also the demographic of the eastern suburbs,” he said.
“And then students [are] trying to somehow compete with all of these people.”
Sylvia Wang says student accommodation is invaluable to international students. (ABC News: Adam Griffiths)
Sylvia Wang, who also attends UNSW but does not live in student housing, said one benefit of co-living spaces was the sense of community.
“Suburbs like Kingsford and Kensington have always been characterised by the university and students,” she said.
While commercial accommodation often draws criticism for its significantly higher rent, Ms Wang said it could be invaluable for international students.
“For regular apartments … you have to be at the inspection in order to qualify to even apply for the place, and that’s just not viable for a lot of international students,” she said.
“They can just order a room online when they’re overseas … and can move in without any sort of hassle or drama.”
More than 5,200 student rooms have been approved in the last six years in the area, but only 494 residential dwellings. (ABC News: Adam Griffiths)
Matt Arkell, from housing advocacy group Sydney YIMBY, called the council’s position “baffling”.
“UNSW brings a huge amount of value to Randwick and Sydney, and tertiary education is one of Australia’s biggest exports,” he said.
“We’d really like to know why they’re trying to kill the goose that keeps on laying golden eggs.”
Cr Parker acknowledged the value students provide, but said residents needed to be prioritised.
“Everyone would agree that in the hierarchy of needs, housing should come before an export industry,” he said.
“Clearly, housing and shelter for the individuals who live in this community is the principal concern.”