Over the past two decades, national revenue generated by international students has become more and more lucrative. Then along came the pandemic, wrecking its havoc, with one of the big casualties 'economically speaking', this unexpected loss in revenue. At the end of 2021, Nick Reece, now Deputy Lord Mayor of Melbourne, called for a “massive wave of new immigrants to help get the city back on track” and this was equally true for Sydney.
As if heeding Reece’s call, in recent months there has been a huge surge in approvals for international student visas, with the Australian Financial Review just reporting a massive increase in approvals for student visas from Nepal alone, with approvals running at an exceptionally high 85 per cent. And applications for visas from China and India, the two largest source countries for international students, are also very high. This news cannot have come at a better time for the real estate market and it is inevitable that history will repeat itself with the positive effect it will have on revenue. 
One of the key factors set to boost revenue is the vast numbers of students whose wealthy parents opt to purchase an apartment for their child, in addition to paying for a great education. The lure of real estate in our promised land cannot be underestimated, particularly as the global state of affairs makes Australia seem like a safe haven by comparison. And many of these parents are now looking for a good quality product by a reputable developer in suburbs where their child is enrolled.
Even if not purchasing a property for their child, many parents look for luxury rental properties to create a desirable home away from home. And as the influx of students will substantially increase demand for the rentals close to campus, this additional renter demographic about to hit the market is great news for investors.
Since the Covid-19 pandemic, the state of NSW, and Sydney in particular, lost $272.7million in international student revenue, and this included lost rental income due to the lack of international students. A report by real estate group, Juwai IQI, cited “Universities have lost hundreds of millions, but Australian landlords have lost an even larger share of foreign student rental income.”
In summary, with interest rates rising and rental vacancy rates declining, once again as people move back to the City in droves post-pandemic, this student influx could be a further injection into the mix that will keep the market buoyant.
For outstanding apartments in locations close to universities and tertiary education campuses, check out Cramer’s must see properties below.
Surry Hills Village, Redfern – close to Sydney University, UTS & UNSW via numerous public transport options (bus, train, light rail)
No comments:
Post a Comment