Three vastly different sectors of Dunedin's accommodation market are competing for a 31-unit apartment complex in the city's central business district ideally constructed for their needs.
The 885 square metre Station Mews building comprises five individual accommodation complexes made up of 31 double and single studio rooms.
The building is located in Anzac Avenue. opposite the Dunedin railway station, and in close proximity to Otago University, Otago Polytechnic, Dunedin Hospital, and the city's retail centre.
Station Mews has been placed on market for sale by Bayleys with an asking price of $3.25million and is being marketed by Bayleys Dunedin director Peter Booth. The complex currently provides a gross annual return of $336,960.
The potential for Station Mews for use as dedicated student accommodation has been tabled.
Otago University Student Association communications coordinator Alisdair Johnston said the site is popular as it was close to public transport links, bars and cafes and had onsite carparking.
"This could be popular amongst post-graduate students, or international students looking for something a bit nicer."
Such an option would be a welcome alternative to accommodation on Castle and Hyde Streets.
Patients and Community Trust Group chief executive Louise Carr said there was a demand for good quality affordable social accommodation in Dunedin. PACT provides support for people with intellectual and other disabilities and people recovering from mental illness.
"There is a need for one-bedroom self-contained accommodation that can be supplied at the lower end of the rental scale for people on benefits," Ms Carr said.
Hospitality New Zealand Southern South Island regional manager Fiona Morton said the site could be viable as a budget accommodation provider up to a three-star standard.
"There is definitely a demand for more accommodation in Dunedin, particularly when there are big events at the Forsyth Barr Stadium and people need to stay as far away as Balclutha and Oamaru."
Each of the studio rooms contains its own fridge, microwave and ensuite bathroom.
The shared amenities within the apartments include a fully equipped kitchen, common room with flat screen television and laundry facilities. There are eight carpark spaces on site.
Mr Booth said Station Mews could make an ideal investment to take advantage of the highly competitive environment students find themselves in to secure quality accommodation each university year.
"Alternatively, the new owner could convert for use as a boutique hotel or backpackers, capitalising on visitors and tourists attending events at Forsyth Barr Stadium and the myriad of tourism events in Dunedin."
Mr Booth said other options would involve utilising the building's existing structure to rent out private apartments on a short-term basis.
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