So I read on Facebook earlier today that Scape has paid $50 million to buy 1-8 Woodburn Street and 175-177 Cleveland Street.
For those who aren't familiar with Sydney, this is the location at 175-177 Cleveland Street. As you can see from this picture taken from Google Maps, there are two Scapes within a two block radius.
The second image shows where the next Scape on Cleveland Street is. The brick building is the only one that separates the Scapes. Undoubtedly the value of apartments in the brick building will decrease if it's surrounded by accommodation that can only be rented by students. The orange and green building at the back is also a Scape and is the former location of "the block".
The third picture shows 1-8 Woodburn Street, and the building does admittedly need to be renovated, however it would be much better to be constructed into LONG TERM apartments that can be rented by everyone, not just student apartments that do absolutely nothing to alleviate the housing crisis. The other point is there is absolutely no reason for FOUR Scapes to be within a one block radius of eachother.
The fifth photo shows Woodburn Street from another location and if this development, which I will be opposing proceeds another set of lights will need to be installed at the below location.
Next door at 179 Cleveland Street is Hotel Hacienda, which upon further investigation, the website shows the building's website as being managed by Scape, which increases the number of Scapes to five in a four block radius. How much is Scape paying the council to have these builds pushed through? This looks extremely fishy to me.
For those of you who don't know, Scape is an international accommodation provider that specifically targets students. You cannot stay in their apartments unless you are a student. They compete against companies like Iglu, Unilodge, Accolade and Y Suites.
I've looked into what these accommodation providers offer and they are basically ensuite bedrooms. The average size of these "apartments" is 18-22 SQM. You get a hot plate, a microwave, a single bed, a shower and a desk and that's basically it. You don't have proper laundry facilities, nor do you have proper kitchen facilities. You also can't have guests over and you can't cook either. Basically the reality is that they are glorified boarding houses by another name.
Then there are the prices. To rent one of these ridiculously tiny "apartments" that are smaller than the average lounge you need to pay anywhere from $559 for a twin share dormitory to $919 for a 25SQM "ultra apartment". An Ultra Apartment will get you a double bed, a shower, a desk, a bathroom, a hot plate and a microwave. For context, that is smaller than the average apartment in Redfern and it is also more expensive than the average rental, which ranges anywhere from $300 - $800 for a room in a flat or $800 in a one bedroom apartment. Some apartments do go for more than $800.
That's not the biggest issue with these new builds. The biggest issue with these new builds is that they are not legitimate apartments. They are ensuite bedrooms that are marketed as apartments. They do not have private laundries or a full kitchen so if you want to cook your food rather than using Uber Eats or DoorDash forget about it. Forget about doing your laundry anytime you want. You'll need to pay $3-$10 for a single load and forget about having guests over because that's not permitted either.
The other issue with these new builds is that they can only be rented by students and the average tenancy agreement is only 44 weeks rather than a full 52 weeks. I'm sure that can be extended though should someone wish to but that's not the point. It's not just students who need accommodation in inner Sydney and people certainly don't need accommodation at artificially inflated prices.
With the number of Scape and Iglu buildings going up I have absolutely no doubt that these companies have bribed the city council and/or state government to get the buildings approved.
Now these companies and the government would argue that the developments help with the housing crisis but they actually don't because as mentioned, they can only be rented by students.
If the government was really interested in fixing the lack of housing in inner Sydney they wouldn't keep allowing niche housing projects to proceed. They would instead increase height restrictions so buildings can have more levels and they would not allow developments that can only be rented by a small portion of society that don't even have proper facilities.
When I say proper developments, I mean the likes of Meriton Build to Rent or similar which are proper apartment size with proper facilities like a laundry, kitchen and in most cases a balcony. That would actually help with the shortage of housing in Redfern and other inner city suburbs.
People need to start writing to Sydney City Council and the state government because these developments should not be permitted and are not doing anything to increase the amount of suitable long term housing stock.
EDIT: Based on the NSW Planning website, Scape buildings are co-living and do not meet the minimum requirements to be considered apartments. As previously indicated, they are lowering living standards in the area.