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Many places have public interest law bodies and community legal centres that will take cases that might set a precedent that is helpful to the wider community. If there is no existing precedent about the materiality of "studeng accommodation" you might be able to get someone to take it up.

16sqm is only the size of the average bedroom. Does that really sound like what you signed up for to you? If not, the builder may themselves be in breach of contract and you might be able to negotiate a deal where you bOth walk away without liability.