It will be luxurious, close to major universities, promising a great deal of communal spaces for study and gatherings but the self-contained rooms will be about the size of a carpark lot.

Three proposed skyscrapers opposite RMIT University in Melbourne city could house up to 1600 students, but these students could be living in spaces as small as 12 square metres, according to a recent report on Domain.com.au.

With more students expected to flood into Australia in the coming years, developers have started to set their sights on development sites close to the major universities in Melbourne. According to the Australian Financial Review (AFR), the student housing market is worth about $20 billion.

There are advanced plans for at least five new high-rise towers in the Melbourne CBD catering to university students. London based Scape Student Living is leading the charge, with a proposal for Melbourne’s largest and tallest student housing project. Scape has reportedly paid $560 million for several prime sites in Melbourne and Brisbane.

Scape told Domain that after six years of development it has designed rooms that fit storage space, a kitchen with cooker, sink and fridge, at least a double bed, and a “pod bathroom” with a toilet, shower and space for toiletries.

Many of these features are built in. “If you tipped our rooms upside down the only thing that would fall out is the bed and the chair,” Scape director Craig Carracher said.

The apartments which are expected to be completed over 2018 and 2019 are expected to cost students about $400 per week. Students will need to prove that they have a valid visa and enrolment in order to rent these units.

The Australian Financial Review reported that Scape has also entered the Brisbane market, acquiring two sites in Southbank that will be amalgamated into a $160 million student housing facility with 700 bedrooms. The project is awaiting DA approval.