A SHORTAGE of student accommodation is fuelling a property boom in some of East London’s suburbs close to the central business district.
This is according to Pam Golding Properties (PGP) East London principal Hanlie Bassingthwaighte.
Responding to a Saturday Dispatch question at the PGP media luncheon in Bishopscourt near Cape Town this week, Bassingthwaighte said the student accommodation shortage provided an opportunity for residential property investments, particularly in the Quigney area which is popular with students.
Walter Sisulu University (WSU), one of the Eastern Cape’s largest tertiary institutions, said it could only accommodate less than 30% of its students in its residences.
STAG African, a company specialising in development of student residences, described the shortage as a “crisis” linked to the high student failure and first-year dropout rate at universities around the country.
“More than 207000 university students as well as a further 400000 Further Education and Training (FET) students will be left without adequate housing when the university year kicks off in February 2015,” said STAG African managing director Johnson Schooling.
“The likelihood of a first-year student passing is increased from 60% to 80% if they stay in residence.”
Schooling said the crisis was fuelled by a boom in demand for higher education. Bassingthwaighte said this was a silver lining for astute property investors in East London. “The whole of the Quigney area and anything close to the beach is absolutely driven to student accommodation,” she said.
WSU spokeswoman Angela Church said the problem was of great concern.
“Lack of accommodation is one of our biggest challenges. Currently our residences are barely able to accommodate 30% of our student population. Our ultimate aim is to house 50% of our students,” Church said.
STAG African said it had provided more than 1055 beds to universities, FET Colleges and schools across the country over the past six years.
But this is not enough.
The property developers said they were currently working on a 240-bed residence at WSU’s Nelson Mandela Drive Campus in Mthatha and a 2046-bed residence at the University of Fort Hare in Alice.
“In an effort to reduce the student accommodation shortfall, STAG African have set their sights on providing 50000-beds to the value of R11-billion over the next five years,” the company said. — siyam@dispatch.co.za
Student digs in high demand
This is according to Pam Golding Properties (PGP) East London principal Hanlie Bassingthwaighte.
Responding to a Saturday Dispatch question at the PGP media luncheon in Bishopscourt near Cape Town this week, Bassingthwaighte said the student accommodation shortage provided an opportunity for residential property investments, particularly in the Quigney area which is popular with students.
Walter Sisulu University (WSU), one of the Eastern Cape’s largest tertiary institutions, said it could only accommodate less than 30% of its students in its residences.
STAG African, a company specialising in development of student residences, described the shortage as a “crisis” linked to the high student failure and first-year dropout rate at universities around the country.
“More than 207000 university students as well as a further 400000 Further Education and Training (FET) students will be left without adequate housing when the university year kicks off in February 2015,” said STAG African managing director Johnson Schooling.
“The likelihood of a first-year student passing is increased from 60% to 80% if they stay in residence.”
Schooling said the crisis was fuelled by a boom in demand for higher education. Bassingthwaighte said this was a silver lining for astute property investors in East London. “The whole of the Quigney area and anything close to the beach is absolutely driven to student accommodation,” she said.
WSU spokeswoman Angela Church said the problem was of great concern.
“Lack of accommodation is one of our biggest challenges. Currently our residences are barely able to accommodate 30% of our student population. Our ultimate aim is to house 50% of our students,” Church said.
STAG African said it had provided more than 1055 beds to universities, FET Colleges and schools across the country over the past six years.
But this is not enough.
The property developers said they were currently working on a 240-bed residence at WSU’s Nelson Mandela Drive Campus in Mthatha and a 2046-bed residence at the University of Fort Hare in Alice.
“In an effort to reduce the student accommodation shortfall, STAG African have set their sights on providing 50000-beds to the value of R11-billion over the next five years,” the company said. — siyam@dispatch.co.za
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