713 new rental homes to hit South Brisbane
We’re big fans of the Southbank Institute of Technology. There’s more than 30,000 students and staff at their campus here and that’s a whopping demand for housing. And their current redevelopment is having a positive impact on South Brisbane in many ways.
But early in the new year their new accommodation facility will open, with a breathtaking 713 rooms. This is the equivalent of a 400 apartment development (that would usually be made up of 1 and 2 bedroom floorplans) so it will be the inner south’s largest residential building by a country mile. (The next largest is Arbour on Grey with 172 apartments).
And while we support the Institute’s need to house its students, including the 2,500 here from other nations, we just wonder what impact this whopping 13 storey facility will have on local landlords.
Our local rents have not gone up this year and some tenants have seen their rents actually drop. And with the new Institute facility being run by an independent operator they’re not just offering rooms to students – inner city workers are being targeted as well.
The good news for landlords is the rooms aren’t cheap. An ensuited bedroom in a 6 room apartment (i.e. sharing a kitchen and smallish living area with 5 others) starts at $265/week. The building is obviously well-located right at the doorstep of South Bank, but there’s no breath-taking facilities on offer. The designs look efficient while not exciting.
According to the building’s operator Brisbane’s international students are still booming in number with QUT’s intake up 18% this year for example. They’ve no doubt done their homework. In the short term though inner south landlords might just have to hold their rents a little while this massive new supply is soaked up.