More extended stay accommodation could take pressure off the rental market.
Several new hotels in the pipeline for Adelaide are paving the way for more extended stay accommodation, which one expert says could take pressure off the rental market.
Extended STAY Australasia managing director Damian Gallace said other states should take note of SA’s investment in the accommodation market, especially as demand for extended stay accommodation linked to major projects, defence and infrastructure was growing.
With multiple hotels in various stages of development across Adelaide, including the 27-storey Hilton Adelaide East End, Mr Gallace said extended stay accommodation was also a key part of Australia’s housing and infrastructure mix.
Artist’s impression of Hilton Adelaide East End. Picture: Supplied by Loucas Zahos Architects.
“The great thing about SA at the moment is the way that the government and the people are seeing the need for good quality accommodation to start with,” he said.
“South Australia is showing what happens when investment and demand are properly aligned.
“The next step is helping other states catch up, and we can absolutely play a role in showing how that works in practice.”
Extended stay accommodation is an apartment-style lodging option designed for those staying in a location anywhere between a few days to weeks, months or years.
Unlike a hotel room, it generally has kitchen and laundry facilities.
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Mr Gallace said it took the pressure off the already tight rental market, which was where many businesses and governments turned to to house transient workers if extended stay accommodation wasn’t available.
They were usually built in areas where major projects or industries were based.
“We have accommodation in Whyalla currently. Hospitals are a key market for us too for people coming from regional towns or out of the city,” Mr Gallace said.
“No matter where you go around the city, there’s always a need for extended stay accommodation, especially in regional areas.
Whyalla, where the current Magnetite expansion program is set to create hundreds of jobs, has extended stay accommodation. Picture: Brett Hartwig
“Accommodation is generally one of the last things to be built in a regional town and when it’s built, it’s not touched for 20 years.”
Real Estate Institute of South Australia chief executive Andrea Heading said earlier this year that it could help solve accommodation shortages in areas that relied on FIFO employees or in places like Kangaroo Island, which suffered from a lack of housing for seasonal workers during peak holiday periods.
“With more people coming in (to South Australia), with say (work in) Defence and AUKUS in particular, there will be a big need for more of this,’’ Ms Heading said.
However, she said securing land to build any form of housing or accommodation could be difficult.