WELLINGTON Level 20, 125 The Terrace, PO Box 3531, Wellington 6140, New Zealand. Phone +64 4 471 0665 AUCKLAND Level 12, 55 Shortland Street, PO Box 105-673, Auckland 1143, New Zealand. Phone +64 9 379 5753 SYDNEY Suite 3, Level 5, 66 Hunter Street, Sydney NSW 2000, GPO Box 254, Sydney NSW 2001, Australia. Phone +61 2 8031 7781 UNIVERSITY OF CANTERBURY STUDENT ACCOMMODATION DISCUSSION DOCUMENT Date: 25 February 2014 Status: DRAFT NOT UNIVERSITY OF CANTERBURY POLICY
Transcript
WELLINGTON Level 20, 125 The Terrace, PO Box 3531, Wellington 6140, New Zealand. Phone +64 4 471 0665 AUCKLAND Level 12, 55 Shortland Street, PO Box 105-673, Auckland 1143, New Zealand. Phone +64 9 379 5753 SYDNEY Suite 3, Level 5, 66 Hunter Street, Sydney NSW 2000, GPO Box 254, Sydney NSW 2001, Australia. Phone +61 2 8031 7781
UNIVERSITY OF CANTERBURY
STUDENT ACCOMMODATION DISCUSSION DOCUMENT
Date: 25 February 2014 Status: DRAFT NOT UNIVERSITY OF CANTERBURY POLICY
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TABLE OF CONTENTS
1.0 EXECUTIVE SUMMARY 4
ABOUT THIS DISCUSSION DOCUMENT 8
1.1 IMPLEMENTATION 10
2.0 INTRODUCTION 11
2.1 THE UNIVERSITY OF CANTERBURY 11
3.0 STUDENT ACCOMMODATION AT UC 13
3.1 REVIEW OF EXISTING STOCK 13
Bishop Julius Hall 15
College House 16
Rochester and Rutherford Hall 18
University Hall (Retro & Ritz) 19
Sonoda Apartments 21
Ilam Apartments 23
Existing Stock - Capital Expenditure 24
3.2 2014 - STOCK UNDER CONSIDERATION OR SECURED 24
3.3 2015 - STOCK UNDER CONSIDERATION 25
4.0 UC DEMOGRAPHICS AND FORECAST FOR STUDENT ACCOMMODATION 27
4.1 UC DEMOGRAPHIC FORECAST 2014 - 2023 27
4.2 FORECAST FOR STUDENT ACCOMMODATION 32
5.0 CHRISTCHURCH POST EARTHQUAKE ACCOMMODATION ENVIRONMENT 38
5.1 ON-CAMPUS 38
5.2 OFF-CAMPUS - HOUSING PRESSURES IN CHRISTCHURCH 40
6.0 TRENDS IN STUDENT ACCOMMODATION 45
6.1 INTERNATIONAL TRENDS 45
6.2 NATIONAL TRENDS 48
7.0 LOCATION & STYLE OF ACCOMMODATION 52
7.1 LOCATION 52
7.2 DISTRICT PLAN 54
7.3 DRAFT UC DEVELOPMENT CORPORATION INVESTMENT OPPORTUNITY FLYER (8 JULY 2013) 55
7.4 STYLE OF ACCOMMODATION 56
APPENDIX 1
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Postgraduate Survey on Student Experience – May 2013 61
APPENDIX 2
New Accommodation Lettings and Rental Values 64
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1.0 Executive Summary The Christchurch earthquakes of September 2010 and February 2011 have significantly changed Christchurch and The University of Canterbury (UC). UC has had to adjust its business operation to cater for students in the post-earthquake environment. Student accommodation has become a critical component of the student experience and a key factor in a student’s decision as to attend UC.
Since the earthquakes UC has seen student numbers decrease by more than 3,000 EFTS1 (2013 versus 2010) and they are not forecast to return to pre-earthquake numbers until 2020. The decline in EFTS does not provide a direct correlation to demand for accommodation as the earthquakes have put significant pressure on housing city-wide. The demand for housing is nowhere more evident than in the lower to middle price range.
Post-earthquake, anecdotal evidence indicates a higher demand for UC accommodation. There has also been more volatility in the student application and acceptance process.
To address immediate 2014 requirements, UC has added in excess of 330 beds to its portfolio for 2014. These are a mix of owned beds not previously used by UC, and recently leased properties.
The UCSA student surveys in 2012 and 2013 demonstrate that the majority of students are finding accommodation within 2km of UC and that rental costs have not increased markedly over the last two years. A minority, however, have recorded more difficulty finding suitable accommodation in 2013.
This document discusses the long term requirement for beds at UC based on its EFTS growth forecasts. EFTS is equivalent full time students which has a flow on effect to headcount numbers at the University.
Due to the lumpy nature of construction, new accommodation at UC could be occupied over the medium term by groups affected by the earthquake as EFTS numbers improve.
The Canterbury Earthquake Recovery Authority (CERA), the Canterbury Development Corporation and the Ministry of Business, Innovation and Employment have each provided statistics and forecasts relevant to the housing market in Christchurch. This document is cognisant of the broader Christchurch housing market pressures, however also recognises that the market will return to equilibrium at some time in the future.
1 Although a disproportionate number has been from the College of Arts whom we are advised are often older or part-time students with less demand for UC student accommodation.
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More detail is presented in the next section. The three key findings providing guidance are:
1. There is little quantitative evidence to support a significant new accommodation requirement for current students. A decline in FTE’s post-earthquake has increased the ratio of beds to students at UC. This ratio has been further enhanced with the addition of 330+ beds in February 2014.
Anecdotal evidence, however, suggests demand for additional accommodation at UC.
2. Strong growth forecasts of “Full Fee” paying Undergraduate students supports circa 600 additional new beds for this sector. This requirement is not immediate.
If development occurred ahead of demand from this sector the beds could be occupied by domestic students in the interim. Building design would need to accommodate both groups.
3. Strong growth forecasts for postgraduate students supports circa 200 additional new beds for this sector. This requirement is not immediate.
If development occurred ahead of demand from this sector the beds could be occupied by domestic students in the interim. Building design would need to accommodate both groups.
A staged build program allows regular re-assessment of demand, and also the ability to modify design to suit changes in the target market or accommodation trends. Oversupply risk is further mitigated by the ability to exit leased accommodation as leases expire.
The following table demonstrates forecasts for growth in equivalent full time students (EFTS) for the different student groups.
Table 1: UC Equivalent Full Time Student Forecasts
Source: 10 Year Forecast Model, UC Financial Services
Total UC EFTS were 15,500 in 2010. 2013 EFTS were 21% lower than 2010, however UC is forecast to return to pre-earthquake EFTS numbers by 2020.
The following table demonstrates the forecast annual average growth in EFTS for each student type between 2013 and 2023..
Table 2: Annual Average Forecast Growth in EFTS, 2013 to 2023
Source: 10 Year Forecast Model, UC Financial Services
The following themes are also reflected:
+ New first-year beds to be built near the centre of campus
+ Flexibility in design to cater for changes in demand over time (for example, dislocated Christchurch students and domestic students in the short term and international students over the longer term)
+ New accommodation to reflect latest international trends in living-learning environments and provision of technology
+ Acknowledgement of UC’s policy of upgrading buildings to a minimum of 67% of New Building Standard where economically and physically feasible.
A process to address positive or negative changes in EFTS forecasts is also presented.
Whilst UC has a comprehensive understanding of the international student sector, Navitas is a new market for UC. Further research into the needs of this cohort prior to committing to any design or commercial arrangement for new accommodation may be required. Key areas of research should include accommodation styles and pastoral care requirements. These issues are discussed within the body of the report.
Providing new, purpose-built, on-campus accommodation will provide UC with a unique opportunity to provide world class accommodation that will provide a competitive
Full Fee - Undergraduate (Navitas) 2014 first yearFull Fee - Undergraduate (non Navitas) 7%Full Fee - Postgraduate 7%TOTAL UC 3%
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advantage in its endeavours to attract New Zealand’s best students, international undergraduate students, and post-graduate and research students.
Success will be measured by the delivery of positive student experiences and higher student retention, not just simply the provision of more beds. Pastoral care, student management, living environments and catering (where provided) are all critical to the student experience.
This report also sets out a flexible implementation programme.
Regular review and update will be needed to reflect changes in the student accommodation business, changes in demand, and changes in the Christchurch housing market. Regular review is more important in this instance due to the pace of change in the Christchurch market following the Canterbury earthquakes.
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About this discussion document The discussion document is presented under five key headings.
1. Increase supply of on-campus accommodation
The following table demonstrates EFTS forecasts for the groups identified as requiring additional accommodation. A 40%2 ‘take-up’ of accommodation has been assumed, and from that an indicative build programme is presented.
Table 3: Additional Student Accommodation Required, Type and Timing
Source: 10 Year Forecast Model, UC Financial Services (EFTS data only)
The style of accommodation and to a lesser degree the timing of delivery of new accommodation is subject to confirming a design brief. The following steps are required:
- Complete research into target user group requirements.
- Prepare a design brief following engagement with the target markets.
Whilst EFTS numbers for Full Fee Undergraduates and Postgraduates grow relatively smoothly over the forecast period the construction and delivery of student accommodation is lumpy. The delivery of beds outlined above may need to be varied to accommodation commercial terms with providers or the practicality of delivering a number of smaller buildings versus fewer larger buildings. Clever design may allow staged development over a period of years to match demand.
- Preferred locations are (in no particular order):
Dovedale campus
Montana Avenue
Ilam Stage 2 (behind Blocks K & L on Waimairi Road)
Independent Hall – College House
Independent Hall – Bishop Julius
- Aim to house first-year students closer to the “campus heart”.
o Postgraduate Accommodation
- Preferred locations are (in no particular order):
Dovedale campus
Waimairi Village and adjacent land
- Aim to locate these groups to the campus periphery.
3. Refurbishment of existing stock
o Confirm a minimum structural condition target for refurbished (owned) student accommodation buildings of 67% of New Building Standard (NBS) where technically and financially feasible.
o Undertake a detailed assessment to confirm the accommodation within the Campus Living Villages (CLV) portfolio that requires refurbishment. Schedule this refurbishment to occur as funds are available from the refurbishment fund that CLV contributes to annually.
o Technology – see below.
4. Technology
o All new accommodation to be wireless throughout.
o Provide wireless internet access across the CLV managed portfolio within five years - by academic year 2019.
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5. Monitor and measure
o Commence an annual survey of hall residents, consistent across all halls. Survey to include an assessment of pastoral care, catering, technology, facilities and student experience.
o Support the continuation of the UCSA annual student accommodation report. Report to be refined to clearly identify UC hall residents.
The approach outlined above is predicated on UC’s forecasts of the student population (EFTS) over the next ten years. The forecasts will either be exceeded or not met. Should the increase or decrease in EFTS be such that more or less student accommodation is needed, the approach could be revised as follows:
EFTS Numbers Exceeded
1. Consider further development at Dovedale campus for non first year students. Low-rise housing can be constructed relatively quickly if site and consenting can be addressed.
2. Expand Sonoda Hall on the adjacent tennis court for post-graduate and senior student housing if this is the cohort demonstrating further demand. Low-rise housing can be constructed relatively quickly if site and consenting issues have been previously considered.
EFTS Numbers Not Met
1. Do not proceed with any of the independent hall options
2. Exit Innes Road and other leased premises as leases allow
3. Accommodation developed for post-graduate students could be used for undergraduate students if flexibility in design allows.
1.1 IMPLEMENTATION
Implementation will need to remain fluid as commercial negotiations, consenting, construction contracts, management arrangements, and funding options are all complex and subject to change. The implementation approach will need to be amended as appropriate over time.
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2.0 Introduction 2.1 THE UNIVERSITY OF CANTERBURY
UC is not described in detail as it should be well known to the target audience.
We note the following key metrics as at 31 July 2013:
In the months following the earthquake, the University lost 25% of its first year students and 8% of continuing students. The number of international students, who pay significantly higher fees and are a major source of revenue, dropped by 30%. By 2013, the University had lost 22% of its students.
UC considers it is experiencing a significant increase in demand for student accommodation in 2014, as measured by3
+ Applications for places in halls of residence have increased 31%, from 1,534 applications in 2012 to 2,012 applications in 2013 (for accommodation in 2014)
+ Applications from domestic students are up 15%, and for international students are up 61% when compared to 2012
+ Study Abroad numbers have recovered to pre-earthquake levels
+ Campus Living Villages (CLV) has approximately 100 Christchurch Polytech Institute of Technology (CPIT) and Lincoln students seeking accommodation.
The UC Investment Plan 2013 – 2015 provides the following summary of the UC strategy.
3 As at October 2013. Project Brief.
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Figure 1: UC Strategy
While UC strategy details a clear focus on research and postgraduate students, UC has a medium term goal of recovering first year student EFTS to pre-earthquake levels.
UC has recently concluded an agreement with Navitas, an internationally recognised education provider, to develop New Zealand’s first Affiliated College at the UC campus. This college provides intensive teaching for specified first-year programmes to international students, with successful completion allowing entry into second-year courses at UC4. Navitas students are full fee-paying.
The management of student accommodation at UC has been predominately outsourced, with CLV as a key partner managing 77% of all beds offered by UC. The remaining 23% comprises three independent halls.
4 UC Investment Plan 2013 – 2015, 7 September 2012.
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3.0 Student Accommodation at UC UC currently has access to approximately 1,950 student accommodation beds. It has also secured additional beds for the 2014 year as Christchurch wide demand is impacting on students’ ability to secure affordable accommodation.
This section provides a review of UC’s existing stock, and also provides a brief summary of stock under consideration or secured for 2014.
UC is also considering progressing plans for a new student accommodation hall at Dovedale Avenue, near the Sonoda accommodation facility. It is possible that this development would be funded and managed by CLV.
The following figure demonstrates the location of existing student accommodation halls at UC.
Figure 2: Student Accommodation at UC
3.1 REVIEW OF EXISTING STOCK
The following table demonstrates the current student accommodation halls offering at UC.
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Table 4: Existing Student Accommodation at UC
Source: UC Accommodation Office
The following section provides a brief overview of the existing UC halls of accommodation.
Hall Type Primary UserSingle Rooms
MealsOne Semester Applications
Annual Fees (2013)*
$ / week**
Bishop Julius Hall Dormitory 1st year(some 2nd year)
109 3 per day No $14,340 $299
College House Dormitory 1st year and 2nd year
152 3 per day No $15,800 $329
Rochester and Rutherford Hall
Dormitory 1st year 178 3 per day No $13,650 $284
University Hall (Retro) Dormitory 1st year 296 3 per day Yes (pending availability)
*** A vacation fee is the fee charged to stay in your hall during the term and semester breaks. Meals are not provided during this time and all students are requred to self-cater.
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UC
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Standard contract length = Feb - Nov with no vacation fee***.
* Reviewed annually.
** Based on a 48 week academic year. Figures provided for comparative purposes only.
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Bishop Julius Hall
Bed Style: Dorm Style Number of Beds: 109 Catered: Yes Development Opportunity: 60 – 120 beds
Bishop Julius Hall (BJH) is independently managed by “Bishop Julius Hall” and provides 109 fully furnished single bedrooms in three separate accommodation blocks. It is fully catered.
BJH provides both wireless and cabled internet access, and a telephone to each bedroom. Wireless internet access is also provided to a range of common areas. Common facilities include a music room, computer suite, TV room and general common rooms. These spaces are all in average condition.
One building is currently being strengthened to 67% of New Building Standard (NBS).
The BJH site could accommodate an additional 60 to 120 beds; however the management board’s preference is for circa 70 beds. Wilkie & Bruce Architects has provided a scheme plan for additional beds. Further development of the site would leverage off the existing infrastructure.
UC is supporting the development of this site by providing BJH with independent technical advice and contacts.
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College House
Bed Style: Dorm Style
Number of Beds: 152
Catered: Yes
Development Opportunity: circa 48 beds
College House is independently owned and managed by “College House”, and is New Zealand’s oldest and “most traditional college”. It was founded in 1850.
The hall provides 152 single bedrooms in ten separate houses, and is fully catered.
Residents are a mix of first year students (circa 60%) and second year students (40%).
The buildings were predominantly constructed around 1966; with another two being constructed in 1990. The condition is generally reflective of the buildings’ age although interiors appear to have been upgraded over time, as required.
Both wired and wireless data connection is available throughout the facility.
The buildings are three-level and walk-up; no lifts are provided. The Chapel is currently closed due to structural concerns.
Bedrooms are typically 12 – 13m2 which is generous by modern standards.
As a result of the Christchurch earthquakes, the central dining hall is currently accommodated in a marquee. A new main block including new House with
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accommodation for 15 students (new total = 159 students) and a new dining hall for seating 200 will be completed in time for the 2015 academic year.
College House site could accommodate a total of circa 200 beds, an increase of 48 beds. Further development of the site would leverage off the existing infrastructure and the new (to be constructed) 200 seat dining hall. Modern dining halls often have student to seating ratio of 2:1.
Further development at College House may be complicated due to possible encroachment onto the adjacent heritage garden.
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Rochester and Rutherford Hall
Bed Style: Single bedrooms + Motel Units
Number of Beds: 178
Catered: Yes
Development Opportunity: UC land adjacent.
Rochester and Rutherford Hall is independently managed by “Rochester and Rutherford Hall”.
The Hall provides 178 single bedrooms for predominantly first-year students. This hall also provides two motel units for parents visiting residents.
The bedrooms are dated but are being progressively upgraded. Wireless data connection is provided to all bedroom and common areas.
Catering is provided by Alliance Catering.
There is land adjacent to Rochester and Rutherford Hall that could be used to expand the hall however management has advised UC that it would like to retain the hall size at 178 beds.
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University Hall (Retro & Ritz)
Bed Style: Dorm Style
Number of Beds: 550
Catered: Yes
Development Opportunity: 150 beds
University Hall is managed by CLV and provides 550 single bedrooms. The halls are fully catered, and from 2014 CLV will be managing catering in-house, having employed its own catering staff.
The facility comprises an older hall – The Retro that was originally built to house Commonwealth Games athletes in 1974, and The Ritz, a facility built in the 1990’s.
The Retro, being the older facility is somewhat dated. Whilst some refurbishment should be considered (bathrooms, carpets and wall linings), the annual rental at the Retro is $2,000 per annum less than the nearby Ritz due to the lower quality facility. We are advised (by CLV) that the lower price point ensures strong demand for the Retro.
The Ritz provides more modern dorm style rooms and apartments with a shared kitchen (up to six bedrooms per kitchen). Previously self-catered, we understand that from 2014 a meal plan is mandatory.
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The condition of The Ritz accommodation is acceptable, and comparable to similar accommodation at other New Zealand universities.
Cabled data connection is available in the bedrooms and wireless is provided to common areas.
University Hall benefits from The Hub, a social hall, library and computer lab facility. Wireless internet access is provided to this area.
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Sonoda Apartments
Bed Style: Apartment Style
Number of Beds: 140
Catered: Optional meal plan available
Development Opportunity: Tennis courts are being considered for further development
UC is an academic partner university to Sonoda Women’s University in Japan. Sonoda Apartments are a group of Japanese inspired buildings and landscaped grounds.
Sonoda is managed by CLV and is part of UC Accommodation Student Village. This facility is approximately a 10 minute walk from the main campus.
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The hall was opened in 1993 and provides 140 beds of which 110 beds are available for general release to UC students. The balance of 30 beds are held for visiting academics, postgraduate students and short-term student groups from Sonoda Women’s University.
The apartments are arranged in a series of five-bedroom self-catered apartments and are provided to residents fully furnished. Kitchens include a hob and a convection microwave, but no oven.
A central common room and computer room is provided and these are furnished as would be expected of a student accommodation facility. Tennis and netball courts are adjacent to the hall.
A central laundry (coin operated) and car parking facilities are provided.
Cabled data connection is available in the bedrooms and wireless is provided to common areas.
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Ilam Apartments
Bed Style: Apartment Style Number of Beds: 845 Catered: Optional meal plan available Development Opportunity: Up to 150 beds
Ilam Apartments comprise 845 bedrooms in a mix of 2, 3, 4, 5 and 6 bedroom apartments. The original part of Ilam Apartments was constructed in 1972 for the 1974 Commonwealth Games. Between 1999 and 2007 a further 542 rooms were added.
Whilst full kitchens are provided in each of the apartments, meal plans are available at the nearby University Hall.
Cabled data connection is available in the bedrooms and wireless is provided to common areas.
Interiors of the new apartments are in good condition however interiors of some of the older units, such as Manuka are in poor condition and in need of upgrade.
Ilam Apartments benefit from a large common room.
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Existing Stock - Capital Expenditure
UC has no forecast capital commitments for its Halls of Residence.
The independent halls (Bishop Julius, College Hall and Rochester & Rutherford) do not currently receive any capital expenditure funding from UC, and CLV has built its own residences (which UC has a reversionary interest in). CLV also leases some accommodation from UC, however CLV meets all capital expenditure requirements5.
UC does provide support services in some areas to both CLV and Rochester & Rutherford which covers grounds and controls technicians and emergency support for most trades. CLV also ‘piggy-backs’ on UC’s contracts for bulk electricity purchases and MTHW (medium temperature hot water) from the central boiler plant6.
3.2 2014 - STOCK UNDER CONSIDERATION OR SECURED
Innes Road – leased
Innes Road provides 80 beds. UC has leased this facility for a term of six years (no rights of renewal were available).
The facility is approximately seven kilometres from the campus.
Waimairi Village – owned
Waimairi Village is a new on-campus complex. Hawkins Construction was engaged in December 2013 to construct this village. Waimairi Village provides 15 x 4-bedroom houses (60 beds) on UC land next to College House.
These houses will be available for occupation by late February 2014, and can be relocated at a later date.
The business case for these houses assumes a student mix of 50% international and 50% domestic, a 48 week per year “in use” period and a 95% occupancy rate.
Head leases and Owned Property
UC has added the following accommodation to its student accommodation portfolio for 2014
5 Adrian Hayes – Financial Controller 6 Rob Oudshoorn – Group Manager Engineering
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Table 5: Head Leased and Owned Accommodation
Address Beds Bed Type Comments 32 Jennifer St 7 5 x Dbl
2 x Single Head lease property
27 Newnham Terrace
18 15 x Dbl 3 x Single
Head lease property
63 Parkstone Cres
8 6 x Dbl 2 x Single
Head lease property
75 Clyde Rd 5 2 x Dbl 3 x Single
UC owned property
39 Creyke Rd 6 2 x Dbl 4 x Single
UC owned property
118 Ilam Rd 4 4 x Dbl UC owned property TOTAL 48
3.3 2015 - STOCK UNDER CONSIDERATION
Dovedale and Ilam
UC is currently considering two on-campus development options with CLV.
Key points include:
+ Circa 250 beds at South-west Dovedale
+ Up to 150 beds at Ilam Stage 2 (we understand development on this site has been re-assessed to circa 80 beds)
+ Could open in semester 1, 2015 (as advised on 10 December 2013, but unlikely as at the date of this report)
+ 35 year build-own-operate-transfer (“BOOT”) arrangement with CLV managing the halls.
Independent Halls
The independent halls are (as the name suggests) independent. UC acknowledges that it cannot direct these halls with respect to further development. The independent halls and UC do however have strong working relationships and work closely to meet each parties respective objectives.
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As discussed above, the independent halls have the capacity to add 100+ beds as follows:
+ BJH - circa 70 beds
+ College House - circa 30 beds
UC is already providing technical advice to BJH and BJH has provided a scheme plan for additional beds. There is an opportunity to extend these discussions to College House and Rochester & Rutherford.
Other Options
UC continues to explore other lease options for 2014 and beyond.
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4.0 UC Demographics and Forecast for Student Accommodation
4.1 UC DEMOGRAPHIC FORECAST 2014 - 2023
UC has forecast student numbers out to 2023. This forecast is presented in the following table.
Table 6: Actual and Forecast Student Numbers, 2012 – 2023
Source: 10 Year Forecast Model, UC Financial Services
The data from Table 6 has been indexed (December 2012 = 100) and is displayed in the following figure.
Full Fee EFTS demonstrate the highest forecast growth, increasing from 6% of total EFTS in 2012 to 16% in 2023. The forecast for this cohort demonstrates annual average growth of 11.2%, compared to 2.2% for total EFTS.
Full Fee EFTS is categorised by UC as: non-degree, undergraduate, postgraduate taught, or postgraduate research. The following figure demonstrates the forecast growth for these four categories. The statistics are indexed to 2010, demonstrating historic (pre-earthquake) EFTS at UC.
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Figure 4: Full Fee EFTS (Index 2010 = 100)
Source: UC Financial Services
Figure 4 demonstrates that for Full Fee EFTS the Undergraduate and Postgraduate Research categories are forecast to exceed 2010 levels during the forecast period to 2023. The forecast increase for these two groups is as follows:
+ Undergraduate – an increase of 1,539 EFTS (963 in 2010 to 2,502 in 2023). Undergraduate EFTS is not forecast to return to the year 2010 level until 2017.
+ Postgraduate Research – an increase of 20 EFTS (27 in 2010 to 47 in 2023). Postgraduate Research EFTS is not forecast to return to the year 2010 level until 2015.
The following table demonstrates the forecast for Full Fee students (EFTS) to 2023.
Table 7: Full Fee EFTS by Type
Source: 10 Year Forecast Model, UC Financial Services
TOTAL FULL FEE EFTS 837 796 770 858 1,015 1,184 1,351 1,541 1,749 1,975 2,220 2,431
Forecast
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The following table demonstrates forecasts for Navitas EFTS at UC.
Table 8: Navitas EFTS Forecast
Source: 10 Year Forecast Model, UC Financial Services
Table 8 above demonstrates that a minimum of 50% of Navitas students will be first-year students.
With respect to international students UC guarantees an offer of accommodation to any international student who applies for a full academic year (48-week contract) in a self-catered apartment by 1 December of the prior year. This offer is reviewed annually by UC. If it is going to continue to provide this guarantee it is likely UC will need to provide additional student accommodation suitable to this cohort.
The following table presents the EFTS forecast for all post-graduate students.
Table 9: Total Post-graduate EFTS Forecast
Total post-graduate EFTS in 2013 were near pre-earthquake numbers (down 31 EFTS). Table 9 demonstrates strong growth in EFTS over the strategy period.
In 2012, 75% of UC’s students were less than 25 years of age.
New Zealand universities have historically focused on providing accommodation to first-year students, thus typically younger students who have preferred fully catered accommodation with a high level of pastoral care.
This trend is changing with New Zealand universities starting to adopt the international model of providing some accommodation to senior students. The most recent New Zealand example is Carlaw Student Village at The University of Auckland.
The following figure demonstrates total applications received by UC for accommodation as at 1 October each year between 2008 and 2013 (for the 2014 academic year).
Figure 6: Applications for Student Accommodation (as at 1 October)
Source: Student Services and Communications
Applications for accommodation in October 2013 (for 2014) were 11% higher than 2010, and have grown significantly when compared to 2011 and 2012. Half of all UC students are from outside Christchurch.
4.2 FORECAST FOR STUDENT ACCOMMODATION
Student accommodation is typically designed to cater for specific groups of students. Following is a list of accommodation types.
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+ Domestic under-graduate first-year (local / non local)
+ Domestic under-graduate non first year (local / non local)
+ Domestic post-graduate (local / non local)
+ International undergraduate
+ International post-graduate
+ Family
Within these groups are various sub-groups. Accessible housing, for example, may be specifically addressed.
Masters and post-graduate student intakes are not consistent with the under-graduate year. There are multiple Masters intakes, and post-graduate students have the option of starting at any time.
Providing accommodation mid-year can be difficult financially due to an accompanying vacancy period pre-occupation.
UC is a Navitas partner university (from 2014), thus will also be accommodating international undergraduate students. This group should be specifically considered as the students are both first-year and international. International students often prefer to integrate into a hall with local (NZ) residents rather than an internationally focused hall.
The Navitas academic year is longer than UC’s standard year.
UC also accommodates a number of students attending block courses and conferences. Prior to the earthquakes approximately 400 Study Abroad single semester students attended UC.
Current Demand for Student Accommodation
At present UC does not comprehensively survey students about their accommodation experiences and requirements, although the halls undertake their own surveys. UCSA has undertaken an annual survey of student accommodation experiences in 2012 and 2013. The respondents are a cross-section of the UC student body thus include students in private accommodation.
A comprehensive survey of students, including both UC halls residents and those in the private market would, over time, provide UC with a valuable benchmark to ensure it is meeting the needs of its students.
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International Students
More than 78,000 international students were approved to study in New Zealand in the year to October 2013. While slightly down from the 80,743 approval over the same period in 2012, the 2013 approvals are 9,500 higher than the 2011-2012 year. China provided 24,178, or 31% of international students in the 2013 year.
The Government has announced a package of new initiatives to encourage further growth in New Zealand's international education sector.
Changes will make it easier for some international students to work during their studies and allow streamlined visa processing in partnership with selected high quality education providers.
Under the changes, students studying full-time will be allowed to work during all their scheduled course breaks (rather than just summer); doctoral and research masters students will be able to work full-time; and English-language students will be allowed to work part-time during their study.
UC undertakes the following obligation to provide accommodation to international students:
+ “The UC Accommodation Student Village (managed by Campus Living Villages NZ Ltd) guarantees an offer of place to any international student who applies for a full academic year (48-week contract) in a self-catered apartment by 1 December. This offer is reviewed annually in July by the Accommodation Office and CLV. The only other University to guarantee a place for international students is Lincoln University with a due date of 10 December. International students are not required to provide a reference as part of their accommodation application.”
Source: UC Accommodation Office
International students often demonstrate sensitivity to accommodation pricing at a lower price-point than local students. UC undertook a postgraduate survey of student experience in May 2013. A summary of anecdotal evidence from that survey is included as Appendix 1.
Another issue often raised by international students is the poor quality of insulation in New Zealand housing compared to overseas. Purpose-built student accommodation can address this issue.
UC is a signatory to the Ministry of Education’s Code of Practice for the Pastoral Care of International Students. UC needs to ensure that its accommodation facilities comply with the requirements of this code of practice.
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With respect to applications from international students at UC the following graph provides a comparison of applications received, as at 30 January, in 2013 and 2014.
Figure 7: International Applications for Accommodation at UC (as at 30 January)
Source: UC Accommodation Office
Figure 7 shows an increase of 41 applications, or 10% in 2014 when compared to 2013. This improvement most likely reflects a return to Christchurch post-earthquake.
Anecdotally, international students expect universities to provide accommodation inclusive of all furniture. If the accommodation is privately owned they tend to expect the university to manage, or assist in managing, the application process. This expectation is often not understood by New Zealand universities and leads to dissatisfied international students shortly after their arrival in New Zealand.
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Options for Additional International Student Accommodation
International students have a preference for university provided accommodation with the following key attributes:
+ Stress-free application process
+ all furniture provided
+ Utilities including wireless internet included in rental price
+ Integration with New Zealand students
+ A strong sense of community
+ Low cost – more relevant to some groups who receive funding for tuition fees but not accommodation
+ Occasionally shared rooms – can address cost issues
+ Self-catering option – can address cost issues and also diet requirements
Prior to any new development at UC that is geared to cater to the international market (particularly Navitas students) a comprehensive study of the needs of the target groups should be undertaken to confirm the above accommodation attributes and other preferences.
Increasing the Number of Shared Rooms
Providing more shared room accommodation is a possibility for providing more affordable accommodation. Larger shared rooms are not particularly flexible for a change of user (i.e. single room) and can lead to other design issues such as compliance with fire regulations and sizing of dining accommodation and common areas.
International students are known to lease apartments and share bedrooms with friends. With respect to shared rooms at UC accommodation, three issues need to be considered:
1. Building compliance; particularly maximum occupants for fire design
2. General marketability of rooms
3. Change of use at a later date (to single / double rooms, catering capacity, common area spaces, retaining flexibility)
4. Shared accommodation is often suitable in existing residential housing such as can be found in the private market in suburbs proximate to UC.
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The ‘Total Package’ Option and Accommodation Scholarships
Providing suitably priced accommodation is an issue faced by all New Zealand universities. More expensive building costs and property prices in New Zealand compared too many other countries lead to comparatively high rental costs.
Some international groups have difficulty paying the weekly accommodation fees required at New Zealand universities. Often home-country financial assistance is available for tuition fees, but not accommodation.
There is an opportunity to re-package UC’s offering to groups that include tuition and accommodation as a single package.
Providing accommodation scholarships is also an option. This option clearly delineates tuition fees from accommodation fees.
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5.0 Christchurch Post Earthquake Accommodation Environment
5.1 ON-CAMPUS
In December 2011, UC had 1,800 fewer domestic students and 400 fewer full fee-paying international students compared with 2010. In October 2013, Government announced a cash grant of up to $260m to UC for the purpose of a new science centre (estimated at $212m) and to expand and upgrade engineering facilities (estimated at $145m). The total cost of these two projects is circa of $357m. UC is expected to fund the $100m difference.
With respect to student accommodation, there has been only minor reduction in the number of on-campus beds due to structural remediation work.
Following the Christchurch earthquakes, seismic strength of buildings has become topical, particularly so for educational institutions, and most importantly with respect to student accommodation. We are aware of institutions setting minimum requirements in the range of 80% to 100% of NBS for student accommodation facilities, and also undertaking building stair reviews with respect to the MBIE Practice Advisory 13 (where relevant) which addresses safety of stairs.
UC has a policy of upgrading buildings to a minimum of 67% of New Building Standard where economically and physically feasible.
One building at Bishop Julius Hall is currently being upgraded to 67% NBS.
UC may wish to provide some guidance or technical assistance to its accommodation providers as and when upgrade works are undertaken at the various halls.
The UC Students’ Association has commissioned a “Student Accommodation Research Report” in both 2012 and 2013. These two reports are the results of surveys of student experiences with finding accommodation in the post-earthquake rental market. 1,608 students were surveyed in 2012 and 844 in 2013. This equates to 12% and 7% of the total student population (EFTS) respectively.
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The figure below demonstrates on a scale of 0 to 10 how difficult it was for students to find suitable rental accommodation in 2012 and 2013.
Figure 8: How easy was it to find suitable accommodation in 2012 and 2013
Source: UCSA
Figure 8 demonstrates that in both 2012 and 2013 63% of respondents recorded a response of 5 or less, stating that finding suitable accommodation was somewhere between a “piece of cake” and “same as always”.
As the survey respondents may not have been seeking accommodation in the pre-earthquake years it is impossible to ascertain relativity i.e. the “same as always” may still be difficult.
The two main responses as to difficulty were:
1. Lack of accommodation available (2012 = 31%, 2013 = 45%)
The survey noted that in 2012 “Nearly half of flatting students pay between $101 - $125” (average rental price per rooms). The 2013 survey noted “Around half of students paid between $101 and $125 per week in rent”.
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In 2012 35% of students paid $100 or less per week in rental, and in 2013 17% paid $100 or less indicating the average rental has increased between 2012 and 2013.
The 2013 survey also identified the following key messages:
+ “For most students, finding accommodation in 2013 was no more difficult than in previous years
+ At the same time a significant minority of students (38%) experienced more difficulty finding accommodation in 2013 than they had previously
+ 80% of students lived within 2 kilometres of the University
+ 17% of students who found finding accommodation more difficult than in previous years noted that there was a lack of housing close to the University
+ Students found the lack of accommodation available and the high cost of renting to be factors that caused the most difficulty in finding rental accommodation in 2013.”
Unfortunately only two years of surveying do not allow issues to be monitored over time.
5.2 OFF-CAMPUS - HOUSING PRESSURES IN CHRISTCHURCH
CERA estimates 25,000 houses were lost in the earthquakes of which 7,860 are in the ‘red zone’. Preliminary analysis indicates approximately 7,000 houses have been re-built however a portion of these will be ‘business as usual’; natural construction growth that would have occurred.
The ‘red zone’ predominantly lies to the east of the city centre. Some of these ‘red zone’ suburbs historically provided lower cost housing when compared to the western suburbs, including those proximate to UC. Residents from the ‘red zone’ suburbs will now be competing for accommodation elsewhere in the city, including those suburbs proximate to UC. This will create additional demand pressure.
It has been reported that traditionally 95% of UC students live within a five kilometre radius of the campus, but now they are living as far away as Halswell (circa 10km).
7,860 houses have been deemed uninhabitable and classified as ‘red zone’. It has also been estimated that an additional 9,100 properties were uninhabitable due to requiring major repairs or rebuilds.
After taking into account new houses being built it has been estimated that the total housing stock has been reduced by a net 11,500 (6.2% of the previous housing stock) between the fourth quarter of 2010 and the fourth quarter of 2012.
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Whilst new housing has gone some way to alleviating the housing shortage, students typically do not occupy new housing.
The number of rentals in the private market held static7 during 2011 and 2012, against an historic trend of annual growth of circa 1,500 rental properties prior to 2010. Since the earthquakes, the total number of rental bonds lodged with MBIE has fallen from 20,500 in the year to December 2010 to 16,600 in the year to December 2012 (the lowest annual number since 1998).
The following figure illustrates the decrease in new rental tenancies between 2010 and 2012 by area based on tenancy bonds lodged in the private market. UC’s approximate location is highlighted. A decrease in bond lodgements indicates people are staying for longer periods in rented housing.
Figure 9: Decrease in Number of New Bonds Lodged Between 2010 and 2012 December
Source: MBIE
7 As measured by the number of active tenancy bonds.
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Appendix 2 illustrates new accommodation lettings (1 May 2013 to 31 October 2013) and rental values for a range of Christchurch suburbs proximate to UC.
The price for new weekly rentals within the greater Christchurch region has risen faster than in other New Zealand regions including Auckland since the earthquakes. The average weekly rental in the greater Christchurch region in the month of February 2013 was $384. This compares to $293 in August 2010, a 31% increase or annual average increase of 11.40%.
The following figure illustrates the increase in average rentals between the three months to August 2010 and the three months to February 2013.
Figure 10: Percentage Increase in Average Rental, February 2013 vs August 2010
Source: MBIE
A 2012 MBIE report identifies a significant decline in the availability of low-rent properties. Pre-earthquake approximately 900 bonds were lodged each month for
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rentals of less than $300 per week. In the six months to February 2013 the number of these ‘affordable’ rentals averaged 362 per month, a 60% decrease. Whilst this analysis is now dated we expect the situation not to have improved.
The report identifies three sources of medium term (2013 – 2016) demand for housing:
1. Increase in residential population growth
Statistics New Zealand has projected that the region’s residential population will increase to 474,900 by 2016, an increase of 20,200 or 4.4% on its June 2012 estimate. If the greater Christchurch average of 2.5 people per dwelling from the 2006 census is adopted, then an additional 8,100 houses will be required to keep pace with population growth by 2016.
2. Temporary accommodation for residential repairs and rebuilds
It is difficult to estimate when this demand will peak, however most repair / rebuild work on residential properties is likely to take place over the next three years. At the end of June 2012, EQC had repaired 18,000 properties, with about 80,000 or 80% of repairs still to take place. IAG, the biggest insurer in Christchurch, has stated that it aims to complete its repair / rebuild programme by the end of 2015.
3. Accommodation of construction workers
It is expected that anywhere between 15,000 and 25,000 construction workers will arrive in the greater Christchurch region for the rebuild. It is probable that the majority of them will arrive in 2013 and 2014 for work over the 2013 – 2016 period. In 2012 Westpac estimated that earthquake related building activity would begin to decline from early 20158 while NZIER forecasts that total construction activity will peak in 20159. If these forecasts are accurate, then the demand for accommodation from construction workers will begin to ease after 2016.
In October 2013 Statistics New Zealand released business demography information that confirmed Canterbury had 4,700 more construction workers in February 2013 than in February 2012. We are unaware of any more up-to-date information on the arrival of construction workers.
If the forecasts above are accurate there should be an easing in both demand and rental growth from around 2016. Based on the Statistics New Zealand information it is likely that construction activity has been slower to proceed than anticipated in the MBIE report.
8 Westpac, ‘Rebuilding a city: An update on developments in Canterbury’, 16 August 2012, Figure 5 9 NZIER, New Zealand Trends in Property and Construction, Fourth quarter 2012, Figure 3.
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Any endeavour by UC to address this 2014 – 2016+ spike in demand and rental costs for its students would have to be via residential style or low-rise accommodation as any significant development would unlikely be delivered prior to the start of the 2016 academic year.
Due to the speed with which changes are occurring in the Christchurch residential market UC should continue to monitor statistical data on a regular basis.
The following organisations are currently monitoring housing in Christchurch:
+ MBIE – various research including the New Zealand Housing and Construction Quarterly and Quarterly Market Rental survey (via bonds received by the Department of Building and Housing)
+ Canterbury Development Corporation – various research including its monthly Economic Snapshot
+ Canterbury Earthquake Recovery Authority (CERA) – various research.
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6.0 Trends in Student Accommodation Trends in student accommodation can be considered from both an international and national perspective.
This section briefly discusses international trends in accommodation, then provides a more detailed analysis of national trends.
6.1 INTERNATIONAL TRENDS
The following trends or issues are common discussion points within the student accommodation sector internationally.
With respect to construction quality and fundamental building design, it is our experience that New Zealand is delivering new accommodation facilities at least as good as overseas universities10.
In the USA we note a desire to house a high percentage of students on-campus, not just first-year students as has historically been the case in New Zealand.
Millennial / Generation Y Students
The Millennial / Generation Y student was born between 1980 and 2000. Significant research on the millennial student has been undertaken - the following are their attributes11:
+ Special – a sense of being vital to the future
+ Sheltered – they expect a residence that is safe
+ Pressured – they want space and opportunities outside the classroom
+ Confident – they want to be challenged, hall programming is important
+ Conventional – value tradition and ritual.
Whilst these attributes may be a generalisation of the Gen-Y student, they do provide some guidance as to the types of issues that should be considered in the delivery of student accommodation.
10 We have toured a range of universities in the USA and Australia between 2010 and 2013. 11 Millennial attributes from a presentation at Texas Christian University, June 2010.
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Living-learning Environments
Living-learning environments have been discussed elsewhere in this report.
+ Living-learning programmes – the definition is elusive, but may include:
o A programme with a clear academic objective
o Residents may share a common academic course
o Formal engagement between accommodation hall and faculty
o Faculty offices and teaching spaces within a residential hall
o Provision of multi-function spaces.
Technology
Technology is driving a range of changes in the learning environment. In recent years, student accommodation has become an extension of university teaching and learning spaces. Today’s students are internet ‘natives’ and expect seamless technological delivery between the university campus and home.
Further development of student accommodation at UC should incorporate modern technology and leverage the traditional benefits of face-to-face interactions between student residents and faculty. Accommodation facilities can become a cornerstone of the campus learning environment and enhance the campus experience at UC.
Technology is discussed elsewhere in this report. Key points include:
+ Today’s student is “hardwired to be wireless”, teaching and learning will occur in every part of the physical campus environment
+ High bandwidth wired and wireless is a requirement throughout campus
+ Integration with living and learning – multi-function spaces
+ Technology-rich study spaces
+ Printing facilities
+ Gaming rooms.
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The Dining Experience
Key trends include:
+ A money-making venture – catering is often a separate campus-wide business unit serving student accommodation
+ Central dining halls catering to multiple halls, and also to staff and ‘day students’
+ Competing with the nearby retail sector:
o Quality
o Variety
o Healthy options
o Organic
+ Meal plans
+ Build your burger / tweet your order
+ Convenience stores.
The dining experience tends to one of the most emotive issues in post occupancy surveys. Anecdotally there is a high level of dissatisfaction from students at New Zealand universities with respect to the quality of meals provided in university halls.
Security
+ Card systems for building access
+ Free movement between floors vs restricted access
+ Increased external lighting
+ Walking tours at orientation, introduction to campus security / police
+ Crisis management
+ Campus-wide emergency communication kiosks / panic alarms
+ Mass notification systems – via texting, email etc.
+ Crime Prevention Through Environmental Design (CPTED) is a set of design principles used to discourage crime. The concept is simple: Buildings should also be designed to prevent crime.
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Other
+ Music rooms
+ Gymnasiums
+ Ensuites – not prevalent yet due to cost, however flexible building design might allow for upgrade later (consider room sizes, service shafts and plant capacity)
+ Computer rooms (dedicated) – now often replaced with living-learning spaces, wireless technology throughout and standing computer workstations in appropriate locations.
The above trends are international, and whilst these should be considered in any further development at UC, this should be done so in a New Zealand context – with some trends being more relevant than others.
With respect to the provision of university controlled accommodation, anecdotally, we are aware that in many foreign countries there is a higher provision than typical is common in New Zealand. By way of example an analysis of six universities visited in Texas in 2010 shows a percentage range from 17% to 46%, with an average of 23%.
6.2 NATIONAL TRENDS
Competing Universities – Summary of Supply
For many school leavers, university provided accommodation is critical in their decision-making process when selecting a university. It is not unusual for school leavers to apply to multiple universities and to accept the first university that offers accommodation.
The number of beds marketed by competing New Zealand universities in 2013, as identified on the universities’ websites, is tabled below. Also displayed for comparison are the 2010 results.
New student accommodation facilities in New Zealand include University Hall and Carlaw Park Student Village at The University of Auckland and Te Puni Village at Victoria University of Wellington.
Recently refurbished or converted facilities include the Willis Street Halls buildings; Joan Stevens Hall and Boulcott Hall, all in Wellington and for Victoria University, and 222 Willis Street for WelTec.
The following figure demonstrates the movement in bed numbers as a proportion of EFTS by university between 2006 and 2013. Since 2006 Canterbury has significantly increased its bed numbers with an addition to Ilam Hall.
Figure 11: Provision of Beds by University
Source: MoE and internet
Note: Canterbury’s percentage has improved due to a decline in EFT’s as a result of the Christchurch earthquakes.
The analysis shows that UC is ranked third in terms of the provision of student accommodation as a percentage of its EFTS. Otago and Victoria rank ahead of UC.
Otago has the highest proportion of EFTS to total enrolments (i.e. more full time students and less part time students). This factor could lead to Otago having a higher accommodation requirement. Due to Dunedin’s low population base, a higher proportion of Otago’s students are sourced from outside of the Otago region, thus also leading to a proportionally higher requirement for student accommodation.
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Whilst ordinarily an analysis of bed numbers as a percentage of EFTS would fairly demonstrate how a university might perform in terms of attracting new students, the Canterbury earthquakes have put pressure on the Christchurch housing market (see Section 5.0). Accordingly, UC is seeking to ‘out-perform’ competing New Zealand university in terms of beds provided in the short to medium term.
The following table demonstrates a range of hall accommodation costs for New Zealand universities.
Table 12: General Cost Comparison (2013)
Table 4 provides UC’s annual accommodation fees; ranging from $8,880 for non-catered accommodation to $15,800 for catered accommodation at College Hall. Weekly rentals within the categories are reflective of a number of factors, and this makes broad comparisons difficult. The factors include:
+ Location
+ Quality
+ Room size
+ Shared or single
+ En-suite or shared bathroom
+ Which utilities/services are included (e.g. Otago includes weekly bedroom clean and linen wash)
+ Additional services (e.g. Full time hall based learning support).
Halls of Residence - Academic year Deposit/Bond
(Refundable)
Fixed fees Rent - standard single
Catered Internet included
Power included
Fully furnished
Auckalnd - University Hall $650 $100 $15,156 (38 weeks) Y Y Y Y
Auckland - O'Rorke $650 $100 $15,156 (38 weeks) Y Y Y Y
Auckland - University Hall apartments $650 $100 $11,090 (42 weeks) N Y Y Y
Auckland - Parnell Student Village $650 $100 $11,090 (42 weeks) N Y Y Y
AUT - Wellesley student apartments $450 $190 $9,720 (38 weeks) N Y Y Y
AUT - Akoranga student village $450 $190 $9,000 (38 weeks) N Y Y Y
Massey - Albany - Millenium Village - Self-catered $660 $200 $9,954 (42 weeks) N N N Y
Waikato - College Hall $400 $100 $11,470 (37 weeks) Y N Y Y
Waikato - Student Village $400 $100 $10,730 (37 weeks) Y N Y Y
Massey - Palmerston North - Atawhai Single Units NA NA $5,776 (38 weeks) N N Y Y
Massey - Palmerston North - Miro/ Tawa/ Totara Halls NA NA $14,212 (38 weeks) Y N Y Y
Massey - Wellington - The Cube (Studio Unit) $500 $250 $9,660 (42 weeks) N N N Y
Victoria - Te Puni Village $500-$600 $75 $12,502 (38 Weeks) Y Y Y Y
Victoria - Weir House $500-$600 $75 $12,502 (38 Weeks) Y Y Y Y
Victoria - Willis St - Cumberland $500-$600 $75 $12,502 (38 Weeks) Y Y Y Y
Victoria - Willis St - Education $500-$600 $75 $9,386 (38 Weeks) N Y Y Y
Otago - University College $100 $1,372 $13,034 (38 weeks) Y Y Y Y
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Many universities benchmark their rental rates against competing universities instead of private rentals within the city they are located. This reflects the fact that students can complete many courses of study at a number of universities. Students are also price sensitive.
UC’s rentals appear generally consistent with competing universities.
Additional observations in respect of student accommodation include:
+ Modern dining facilities often have a resident to seat ratio of 2:1 and operate with an extended meal time. A number of UC halls (including the independent halls) have a ratio close to 1:1. Adding further beds at these halls may require limited additional work to the dining halls and kitchens thus reducing overall construction cost per bed.
+ Wireless data connection is becoming the norm in new facilities, albeit cabled connections may be provided to specific areas (e.g. TV’s to allow gaming).
+ The student to bathroom ratio ranges from 2:1 to 6:1 at UC. Modern facilities often aim for a ratio of 4:1 or better.
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7.0 Location & Style of Accommodation The optimal location and style of accommodation is subject to the type of resident, or user group. Location can be categorised as on-campus or off-campus, and within those categories can be further defined with respect to its proximity to the campus centre (or heart).
Accommodation styles include; single dorm room, catered, non-catered, apartment, house and homestay. Halls may also be either purpose-built or converted from other uses such as office.
Both location and style of accommodation can influence the student experience and therefore the University’s ability to deliver on its stated goals and objectives.
Further development at UC will be guided by the following:
+ The Christchurch City Plan
+ University of Canterbury Campus Master Plan (August 2012), and
+ (Draft) UC Development Corporation Investment Opportunity Flyer 8 July 2013.
This section commences with a consideration of location without constraint by the three guiding documents, then discusses the implication of the three documents. Styles of accommodation are then considered.
7.1 LOCATION
First-year student accommodation is best located near the centre, or heart, of a campus, and accommodation for older students is generally preferred to be located more peripherally. Post-graduate students and families may be located near the campus perimeter or off-campus. This model supports the following:
1. First-year / younger residents generally have more involvement in extra-circular activities (clubs etc.)
2. Security is often better in the heart of the campus
3. Campus vibrancy – first-year students are often more social, thus bring more vibrancy to the campus heart
4. Less management or oversight of older residents
5. Quieter location and open spaces for families.
At UC, concentrating undergraduate accommodation near the campus heart would leverage the refurbished James Hight food hall and add vibrancy to this area.
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We are aware of anecdotal evidence at UC supporting housing of younger students’ on-campus; Navitas has advised that its preference is for on-campus accommodation for its younger students12.
Older and post graduate students often like to feel less constrained or managed. Peripheral campus or off-campus accommodation options provide this. These students may also have a higher demand for vehicle parking options.
The area identified as Development Six, Dovedale, in the (Draft) UC Development Corporation Investment Opportunity Flyer would be well suited to older students, postgraduates, and family accommodation. The Dovedale campus provides sufficient opportunity, due to land availability, to provide low to medium rise accommodation that would be in keeping with the balance of the campus and sympathetic to the adjacent residential area.
An off-campus hall could satisfy many of the ‘best in class’ design elements but may not deliver as well as an on-campus solution in the areas of; proximity to campus, safety and security (outside the building) or transport costs.
Off-campus halls are likely to provide a poorer outcome in terms of building the lifelong association with UC. Future integration of living-learning programmes may also be complicated by the distance from campus (guest lectures, tutors, study groups).
Off-campus conversions can, however, be cost effective and provide further beds relatively quickly (particularly if converted or refurbished buildings). The location of off-campus facilities is a critical component of any selection process. We are unaware of any buildings available for conversion proximate to the UC campus, albeit a search for options is not within the scope of this report.
The qualitative measures of on-campus, off-campus, purpose-built, and conversions can be considered graphically as follows. This simplistic demonstration does not apply a weighting to any aspect, particularly price.
12 Student Accommodation Catch Up Meeting Minutes 28/11/13.
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Figure 12: Location & Style Benefit Matrix
7.2 DISTRICT PLAN
Campus development is governed by the Christchurch City District Plan zone. Resource Management Group Ltd (UC’s planning advisor) advises that the campus is within the Cultural 4 Zone (CU4, Planning Map 38).
The Cultural 4 Zone provides for ‘tertiary education and research activities’ as permitted activities, meaning that resource consent is not required. The City Plan defines ‘tertiary education and research activities’ as being:
‘Land and/or buildings used for the provision of teaching or training and/or related research; commercial research and laboratories; and ancillary and accessory administrative, cultural, communal, accommodation, retailing and recreation facilities.’
This definition provides for a range of ancillary and accessory activities, including student accommodation.
The campus is sub-divided into; West Ilam, East Ilam and Dovedale.
The zone rules provide the boundaries within which further development must be contained (without resource consent). Site coverage rules limit the area covered by buildings or impervious surfaces such as vehicle parking.
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We are also aware that UC has a requirement to provide a minimum number of car parks. We understand Resource Management Group is currently investigating this requirement for UC, and note that building student accommodation on the current Dovedale car park may pose wider car parking implications for UC.
7.3 DRAFT UC DEVELOPMENT CORPORATION INVESTMENT OPPORTUNITY FLYER (8 JULY 2013)
The (Draft) UC Development Corporation Investment Opportunity Flyer 8 July 2013 identifies a range of development opportunities. These are demonstrated on the following figure.
Figure 13: Investment Opportunity Flyer – Development Opportunities
Source: (Draft) UC Development Corporation Investment Opportunity Flyer 8 July 2013, page 6
Developments Four, Five, and Six are identified as being for student accommodation.
Development Four (red) is an expansion to Bishop Julius Hall on vacant land bordering Homestead Lane. This is discussed elsewhere in this report, and is considered a development that should be further investigated; albeit we note various opinions as to the extent of expansion of between 60 beds and 120 beds.
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Development Five is medium density housing. It is proposed to remove existing housing and create a modern housing development comprising one to four bedroom townhouses. The tenant mix is advised as including visiting academics and postgraduate students.
Development Six is identified as providing a mix of medium density housing and “student accommodation”. The images suggest “student accommodation” to be more intensive hall style accommodation.
7.4 STYLE OF ACCOMMODATION
Accommodation styles include, but are not limited to; single dorm, catered, non-catered, apartment, house, home-stay, flatting situation etc. Ultimately the style of accommodation is dictated by the demand; with first-year domestic, older student, international, and family groups all requiring different styles of accommodation. The demand analysis at Section 5.0 provides guidance as to the quantum of each style required.
In addition to confirming the style of additional accommodation at UC, that accommodation, particularly if owned (or ultimately owned on the termination of the CLV BOOT arrangement) should also achieve the following:
+ Flexibility – should be capable of re-design of the interior spaces in the future as needs change. This may include a change of use
+ Best in class – UC is competing for students against seven other New Zealand universities, international universities, and non-university training institutions. UC should aim to deliver ‘best in class’ accommodation. Best in class is attainable when the following elements are considered:
o Location – on-campus, off-campus, proximity to the heart of campus
o Physical spaces – bedrooms, common, learning and dining spaces
o Living-learning environments – physical spaces and integrated learning
o Technology – data, cabled and wireless, technology-rich study spaces
o Catering (where applicable) – the catering contract / model is critical
o Management – pastoral care, application processes, dispute resolution.
Environmental sustainability is yet to factor as a key attribute of university student accommodation in New Zealand - other than where the payback period is very short. Sustainable design elements are often discounted due to the initial construction cost; however universities can address sustainability through its operation of a facility with,
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for example, a reduce, re-use, recycle policy and provision of facilities that encourage this.
Location has been discussed above.
Physical Spaces
+ Bedrooms – sample bedroom layouts are provided below. Well-designed single bedrooms are now as small as 9.50m2 to 10.0m2 although this is subject to efficient and well-designed furniture. Other key bedroom features include; opening windows (restricted) and natural light, well sound-proofed, wireless internet access, heated, ample power, and lockable.
Residents appreciate the ability to personalise bedrooms, although this needs to be balanced against maintenance costs and the need to seismically secure high wall units such as wardrobes.
+ Apartments – depending on the style of accommodation, kitchens, lounges and bathrooms also need to be well-designed.
Whilst internationally, apartment kitchens are often re-heat only (microwave and possibly hobs), provision of a fully equipped kitchen that includes an oven is New Zealand ‘best in class’.
+ Multi-function – spaces include small group study rooms, larger study areas and computer suites. As students typically have their own laptops there is a decreasing need to provide computers.
There is an international trend toward greater teamwork / project group work13, thus a greater requirement for group-work spaces. New Zealand appears to be lagging this trend at this time.
+ Connecting spaces – the spaces between ‘designated’ spaces, such as corridors, are gaining more attention as spaces for interaction between residents. In large part this is due to improvements in technology, particularly wireless access to the internet. Consideration should be given to opportunities for casual seating and meeting spaces with the provision of power.
+ Dining – greater menu options and more variety is now the norm. Modern dining spaces have less formal layouts than historic benched seating type dining. Spaces need to be flexible for alternate uses. Zoned lighting and higher lux levels will allow dining spaces to be used for study, and technology can enable the spaces for special events.
13 Note, we are not educators and this is a general comment following discussion on this point during a tour of US universities in 2010.
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+ Small community kitchens – for group student use and can also be used for cooking instruction.
+ Laundry – A 1:40 ratio of washing machine and dryer to student is current best practice in New Zealand. We are aware of lower ratios overseas (1:30 to 1:35). Overseas, laundries are now often termed laundry “lounges”, with spaces for socialising. The University of Auckland’s two new facilities laundries are cabled for TV.
+ Outdoor – spaces include (for example) relaxation areas, BBQ areas and sports facilities. If well designed these spaces will encourage students to gather, interact and learn.
Durable construction materials in all spaces will help limit annual maintenance costs – life cycle cost analysis is an important consideration.
Living–learning Environments
‘Living–learning’ is a phrase more common outside New Zealand and is a generic term used to describe the merging of living and learning at university student accommodation halls. ‘Living–learning’ can include:
+ Physical spaces that encourage academic learning within a hall
+ Living–learning programmes where students following similar programmes of study are housed together
+ Associations between halls and university departments, with the departments providing tutoring within the hall environment.
As noted previously, it is now common for teaching to be available via electronic media with fewer students physically attending lectures. The design of accommodation has had to reflect the changing models of learning with the creation of higher quality study spaces, living / learning programmes, tutorial spaces and better technology.
Benefits of this accommodation type include; proximity to campus facilities (lectures, libraries, gymnasiums, other halls), safety and security, social life (including clubs), cost (potentially also lower transport costs), social life (critical mass of students), convenience.
Internationally, living-learning spaces within accommodation facilities are often available to other user groups via a booking system (for example university faculties).
Technology
Today’s students increasingly use technology for social and entertainment and academic purposes. Universities have had to address an exponential appetite for
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bandwidth as this generation of student considers convenient technology as normative. Students are increasingly dependent upon technology for academic purposes.
Best-in-class technology at an accommodation hall may include:
+ Access to the UC computer network
+ On-line lectures for small groups
+ Video-conferencing
+ Electronic whiteboards
+ Printers
+ Large screens set up for gaming
With an increasing array of teaching models; online courses, online lecture notes and course materials, hybrid courses with less lecture time, campus spaces outside the classroom will become more important learning environments. Providing technology in accommodation halls that supports this trend will be critical to a halls success.
As the use of technology for learning increases, an environment that facilitates quality personal interactions will become more important and appreciated by hall residents, and accommodation halls will become pivotal in creating communities on campus.
Catering
In student resident surveys the quality and/or variety of food is often raised as a disappointment. Models of supplying catering include:
+ In-house – the hall manages the menu and the budget.
+ Fully out-sourced – subject to agreed key performance indicators (KPI’s). KPI’s can be difficult to manage, issues can take some time to rectify, and problems must be evident (via complaints) before discussions are had with the caterer.
+ Mixed mode – the hall may take the financial risk on the food component of the budget (for example), thus can manage the variety, and to some degree the quality of food.
The scope of this report does not include further consideration of catering options.
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Management
Accommodation hall management is either in-house or outsourced. Blending options whereby a university may manage, for example, pastoral care or facilities management are not uncommon.
Other
Internationally, security is now a key design element of student residences. Violence at US educational institutions is well documented, and the need for security understood. New Zealand has not yet required the level of security common overseas however passive security via thoughtful design (including CPTED principles) will ensure facilities remain appropriate over the longer term. Passive design will include longer site lines, ample lighting and no dead-end areas.
New facilities may include added infrastructure such as cabling for later addition of surveillance cameras if required.
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APPENDIX 1
Postgraduate Survey on Student Experience – May 2013
International students often demonstrate sensitivity to accommodation pricing at a lower price-point than local students. UC has provided the following anecdotal evidence, some of which is from a May 2013 postgraduate survey on student experience. A key survey focus was on sourcing accommodation on and off-campus. Of the 76 respondents, 28 were international. Although prices are not mentioned in most cases, the comments from international students in relation to pricing may be useful. Below is a range of survey comments. UC additional comments are in red:
+ “It is not hard to find a vacancy in the Uni's apartments. But the price is comparatively high. I am looking for a cheaper one next year. (UC comment - Self-catered apartments are priced from $160-$190 per week on a first-in, best-price basis.)
+ Getting on-campus accommodation was pretty easy and did not take too long. However, I was assigned a temporary on-campus accommodation, which foresees a higher weekly fee ($250 per week) instead of the one for students with a standard accommodation contract. I am looking for any available accommodation in these weeks, I would like to remain on-campus but not be forced to pay a third more than my colleagues just because I arrived in the middle of the term.
+ It has been nearly impossible to find a place to stay, let alone at a reasonable price. UC accommodations were unable to find me a place. On campus housing refused short term contracts and were exorbitant. University staff were largely unhelpful and unconcerned. A fellow student finally, after six weeks of showering at the Uni gym, found me roommates and a room to let. To be honest, the housing situation caused me a huge setback in my work, comfort level, sense of security and attitude about NZ, Christchurch and certainly UC.
+ I am sharing a flat with 3 other students since my arrival in end of September. Coming with a European background, I was shocked by the insulation state in Christchurch: old style heater and no double glazing it is a call for a rapid change as not only the heat lost has an economical cost, but it also has an environmental cost, 2 concerns of Kiwi. I found my flat convenient and close to the Uni, but still overpriced. The main issue is from far the windows and global insulation.
+ I generally follow Trademe for accommodation advertisements. Currently my husband and I are living in a shared house. It took us about 3 weeks to find this place on Trademe. As an international student holding a University scholarship, I find the renting expenses very high. Also, a major problem is an absolute scarcity of one-bedroom units/apartments. And, going beyond that becomes too costly. I hope the University will consider extend the accommodation arrangements and install some one-bedroom units.
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+ It so difficult to find accommodation here regarding to the budget and location. Last time, we had an issue with previous landlord and we went to Tenancy Tribunal. Now we are renting a room with the budget that enough to rent a house!
+ It took me 6 weeks to find an apartment that was willing to say that they will take me - as I am not from New Zealand I couldn't supply any letter or recommendation and student salaries are not attractive to property owners. Though the rent is quite high, I am unwilling to switch as the chances of finding something else are very slim.
+ I found it really hard to get an accommodation. Most of them are extremely expensive, if available. My current accommodation is quite far from university and not very clean and tidy. I am looking for an accommodation near to campus for myself only that is not very expensive too.
+ I visited 14 flats and applied to live in 7 of them. I received 6 rejections. I got lucky and found a nice place in a good neighbourhood; however it is a bit small for a family. The problem is anything bigger would be very expensive for a student. Other students had great difficulty, we cannot afford $350-400 a week for a two bedroom flat. But that is a normal price now.
+ The accommodation reality in Christchurch post-earthquake is definitely hard. I have heard that, in terms of quality, it wasn't much better before but at least houses were in good numbers. The quality of housing in NZ is very low: no insulation, no proper heating (only in NZ I see people convinced you can heat a whole, uninsulated house with ONE heat pump or log burner. And you have to consider yourself lucky if you manage to score a house that has one of the above!). A lot of houses for rent have no source of heating at all. Also, double glazing is inexistent. I come from the North of Italy, where the climate is similar to Canterbury but colder in winter and hotter in summer, yet the houses are much cosier. I find houses in NZ are very similar to what I have seen in New Caledonia and part of South East Asia i.e. built fast, with cheap materials, and quite low quality as a result. Only family homes (owned by the occupants) that get completely stripped down and renovated have an adequate living standard, but those kinds of accommodation are out of reach of students. Landlords do not invest in improving house quality at all because they are not forced to by any legislation, and also don't have to live in the houses they rent, and they are confident that, especially now, they can put any house on the market and have it rented in no time at all, however indecent it is. I think the accommodation office and the international office should do more to inform incoming students of the reality of housing in Christchurch, how hard it is to find a house and also how expensive, then maybe people would consider their move carefully or come more informed.
+ It would have been good to know that furnished rooms are not standard when renting in NZ. Finding a room with a bed proved the biggest obstacle to securing a place to stay. Secondly, bond money was a surprise, particularly when coupled with paying for rent in advance. If you are on a scholarship, as many international students are, then
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this is prohibitive. The standard of private accommodation (in the 'affordable on a scholarship’) range was also a let down, but the options available at e.g. Ilam ask for upfront payments, the likes of which a scholarship prevents one from doing. The accommodation office evidently assumes some form of financial help from parents/savings accounts, but this is unrealistic and unfair.
+ I was expecting the accommodation to be found easily and not too expensive. The university should have make arrangements for the future student's accommodation before his/her arrival, especially those who are coming from out of country.
+ The number of on-campus accommodation for families is completely unsatisfactory. It is difficult to build a community of researchers if we are living all over the place, it would be far better to be closer to campus. Unfortunately there are very few affordable options for mature students with families (as many graduate and PhD students are).
+ We did not know it was so hard to find accommodation and so expensive. I think landlords are taking advantage of the situation. Our budget is not enough because of the accommodation so I don't know what I'm going to do next year. I think this is an amazing place but accommodation is a real problem for us, we were counting with UC accommodation when we decide to come and study here.”
Source: UC Accommodation Office
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APPENDIX 2
New Accommodation Lettings and Rental Values
Source: Ministry of Business, Innovation and Employment
