An increasing demand for student housing has prompted Edith Cowan University to contract Campus Living Villages to construct a new 355-bed accommodation unit at its Mount Lawley Campus.
ECU vice-chancellor Kerry Cox said the new development is in response to higher demand on the back of a tight rental market in Perth.
"The rental market in Perth has tightened considerably in recent years and on-campus accommodation provides an affordable, convenient and secure solution for students relocating to study," he said.
"ECU's Student Villages provide a safe, caring and culturally supportive environment for all residents and we are pleased to be able to extend this service to more students."
The new building includes a mix of one, three, four and five bedroom apartments, resident common areas, a pool, landscaping and a café.
It will also boost total bed numbers at the campus to more than 700.
The project is valued at $38 million, including site works and the new development.
The building will be ready for the start of semester one in 2011, subject to planning approval.