With the return of vaccinated international students to the city of Sydney, many believe it will significantly impact the apartment market.
A boost for both landlords and vendors, the absence of international students has impaired the real estate market since the Federal Government shut the international borders in March 2020.
Their absence directly affected landlords who had hoped to lease apartments to students and often to their families.
Sydney saw increased vacancies and lower rents, especially in the inner ring and other tertiary education precincts, despite many other rental markets tightening.
Also, property prices have experienced a boom everywhere but apartment markets which are the typical accommodation for overseas student buyers.
According to the Asian property portal Juwai, the company have noted that universities have enrolled more than 100,000 students living overseas and studying remotely.
Yet, none of these offshore students occupies Australian apartments.
Juwai IQI Executive Chairman Georg Chimel shares;
“Universities have lost hundreds of millions, but Australian landlords have yielded an even larger share of foreign student rental income.
Our best estimate is that Australia will get back to 75 per cent of 2019’s resident international student population in 2022, but that getting back to 100 per cent will take until 2024 or 2025.”
Currently, three out of five international students hail from countries not considered safe for the early resumption of fully vaccinated travel. Still, these could return via Queensland, given the Palaszczuk government’s foresight in building the Wellcamp quarantine facility near Toowoomba.
Mr Chmiel noted that metropolitan suburb profiles had significantly changed during the pandemic.
Click here to read more about Sydney’s current apartment boom.
Source: The Daily Telegraph
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